Case for Task-2: Hard Agriculture Corporation is working at full production capacity producing 13000 units of a unique product, white orchid. Manufacturing cost per unit for white orchid is: Direct materials S 10 Direct manufacturing labor 2 Manufacturing overhead 14 Total manufacturing cost $26 Manufactring overhead cost per unit is based on variable cost per unit of $ 8 and fixed costs of $ 78000 (at full capacity of 13000 units). Marketing cost per unit, all variable, is $ 4, and the selling price is $ 52. A customer, the XYZ Company, has asked orchid to produce 3500 units of Princess Orchid, a modification of white orchid. Princess Orchid would require the same manufacturing processes as white orchid. XYZ company has offered to pay HardAgriculture $ 40 for a unit of Princess Orchid and share half of the marketing cost per unit. 1. What is the opportunity cost to HardAgriculture of producing the 3500 units of Princess Orchid? (Assume that no overtime is worked) 2. The BigGrass Corporation has offered to produce 3500 units of Princess Orchid for HardAgriculture so that HardAgriculture may accept the XYZ Company offer? That is, if HardAgriculture accepts the BigGrass offer, HardAgriculture would manufacture 9500 units of White Orchid and 3500 units of Princess Orchid and purchase 3500 units of White Orchid from BigGrass. BigGrass would charge HardAgriculture $ 36 per unit to manufacture White Orchid. On the basis of financial considerations alone, should Hard Agriculture accept the BigGrass offer? Show your calculations. 3. Suppose HardAgriculture had been working at less than full capacity, producing 9500 units of White Orchid at the time the XYZ company offer was made. Calculate the minimum price Hard Agriculture should accept for Princess Orchid under these conditions. (Ignore the previous $ 40 selling price)