ce phone Ali Thanks for using Office We've made some updates to the privacy settings to give you more control. Your organisatiews you to www could writo de arruine vacy Settings. These optional cloud-backed services are provided to you under the Microsoh Services Agreement A11 if the special order was accepted Kangeroo would not be able to fulfill 1,000 units of sales to their regular customers. No additional investment in B 1 Question 5 (5 marks) 2 Kangeroo Company incurs a cost of $18 per unit to make a product that normally sells for $29. A foreign wholesaler offers to buy 4 200 units at $26 each. Kangeroo will incur shipping costs of $1.46 per unit. 3 4 5 $ Number of units in special order 4,200 6 Regular selling price $ 29.00 7 Special order selling price 26.00 8 Variable cost per unit $ 18.00 9 Shipping cost per unit (incurred by Kangaroo) $ 1.46 10 If the special order was accepted Kangeroo would not be able to fulfill 1,000 units of sales to their regular customers. No additional investment in equipment will be made. 11 12 Regualr customer orders that cannot be fulfilled (number of units) 1,000 13 Required: Calculate the increase or decrease in net income Kangeroo will realize by accepting the special order. (4 marks) 14 15 16 Revenue from special order 17 Total Variable costs incurred for special order 18 Opportunity cost 19 Increase in Profit (Loss) if special order is accepted Coversheet Q1 Q2 Q3 04 05 06 Formula Sheet + Workbook Statistics inn Mode: Automatic Revenue from special order Total Variable costs incurred for special order Opportunity cost Increase in Profit (Loss) if special order is accepted Accept or Reject Special Order: (1 mark) Based on the quanitative analysis, should the sepcial order be accepted? (Yes or No)