Case #4 North Inc. manufacturers banners and sells those to other business. Recently, a customer has placed an order for an order for 60,000 banners that are to be emblazoned with the logo of the customer's company, to be priced at $120 per banner. Normally, North Inc. would charge $165 per banner. The company incurs fixed selling costs of $700,000 per year and variable selling costs of $16 per unit. In addition, the company has provided the following estimates: Per Banner $24 $15 Direct materials Direct labour Variable overhead Fixed overhead $30 $18 Required: (A) The company has capacity to produce 600,000 banners per year, however current production is 400,000 banners per year. Should North Inc. accept the special order? If North Inc. accepts the special order, how much will income increase or decrease? (B) Ignore your calculations in (A) and assume that the company has capacity to produce 600,000 banners per year, however current production is 550,000 banners per year. Thus, North Inc. has the following options: (1) reject the offer, (2) accept the offer and deny sales to some of its customers, or (2) accept the offer and temporarily increase capacity at a cost of $250,000. Assess each alternative and make a recommendation regarding which alternative the company should pursue. By how much will income increase or decrease by accepting the order? (C) What qualitative factors should North Inc. consider before accepting the special order