curitate ad to produce price Question 1 (8 marks) ABC Company produces product XXX. It has the capacity to produce 850 units of XXX. Current production and sales are 750 per month. The company normally charges $1200/per unit of XXX. Cost info is as follows: Variable costs (vary with units produced) Direct Materials Direct labour $ 450,000 150,000 Variable costs(vary with number of batches Fixed Manufacturing Costs Fixed Marketing Costs 50,000 100,000 50,000 $ 800.000 Total costs ** costs of 50,000 are based on 50 batches at $1,000/batch ABC has just received a one time order for 50 units of XXX at $1100 per unit. Accepting this order would not effect their regular business. ABC makes product XXX for existing customers in batch sizes of 15. (50 batches X 15 - 750 units of XXX) The special order would require ABC to make the 50 units in 10- batches of 5 units. Should ABC accept this order (2 marks) Suppose capacity was only 775 units. The special order has to be either accepted or rejected in entirety. Should the special order be taken. (4 marks) What is the minimum price that ABC would take and accept the new contract (2 marks)