Class Activity 5 Boffin Ltd makes childrens' chemistry sets. . Boffin has a capacity of 10,000 sets per year. . Due to falling demand, towards the end of the year, they only expect to produce 9,000 sets this year. . The normal retail price is $199. . Cost data per set for production at capacity is: - Prime Cost: $80 - Variable Manu O/H: $20 - Fixed Manu O/H: $15 . A large local school approaches Boffin and offers $110 per set for 500 sets . Based on (short-term) financial factors alone, should Boffin accept? . What other factors may influence the decision? KAPLAN BUSINESS SCHOOL AUSTRALIA