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Can you please answer this management accounting question by completing the schedule where it says reqired? 3. A FarmFresh distribution centre has production capacity of

Can you please answer this management accounting question by completing the schedule where it says reqired? image text in transcribed
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3. A FarmFresh distribution centre has production capacity of 50,000 crates of ready meals (units) but in the next month sales volume is expected to be 35,000 units at a seling price of 40. Expected costs and revenues for the next month at an activity level of 35,000 unts are: Dir Lab 12 8 2 Dir Mats Var Manufacturing onds Fixed Manufacturing onds Marketing and Distribution Total costs 420,000 280,000 70,000 280.000 105,000 8 w 3 33 1,155.000 Sales 40 1,400,000 245,000 Profit A new once off customer has offered to purchase 3,000 units next month at E20 a unit but requires their company logo to be attached to every product at an anticipated cost of E1 per unit. They will collect these crates from the distribution centre hence there will be no additional marketing or distribution costs. Currently labour is under utilised Required: Complete the schedule na per below and advise whether the contre should accept of reject the offer. (10 marks) Do Not Accept Order Difference (Relevant Cost) E Accept 35.000 Units E 12 420,000 280,000 8 2 70.000 1 0 Dir Lab Dir Mats Var Manufacturing onds Inserting Logo Fixed Manufacturing cha Marketing and Distribution Total costs Sales Profit 8 3 33 280.000 105.000 1,155,000 1.400.000 E245.000 40

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