During July $2024$ NamJuice received an offer to supply the Ongwediva Trade Fair with orange juice. The Ongwediva Trade Fair will pay NamJuice for providing the juice, even though they will offer it for free to the public at the Fair$$s stalls. This exposure will lead to a marketing cost saving for NamJuice of N$$20000$ for the year.

The Ongwediva Trade Fair is expected to attract about $38500$ people in total over a period of $3$ days. The Fair would like to order $13500$ litres of juice for the total duration of the Fair.

The juice will have to be delivered in August $2024.$ As NamJuice$$s juice range has a good shelf life, it will be produced in August $2022$ to be in time for the Fair.

The following steps take place in the production process:

$1.$ Purchase of raw materials:

To produce one litre of orange juice, NamJuice needs to purchase on average $8$ oranges. The final product only uses an average of $7$ oranges per litre as NamJuice removes inferior oranges prior to starting the production process. NamJuice purchases the oranges at N$$0,35$ each.

Other products added during production to get the desired texture for the fruit juice cost N$$0,14$ per $100$ml$.$

$2.$ Transportation of raw materials:

NamJuice usually uses Trancor $($PTY$)$ Ltd to transport all the fruit needed for production from the suppliers to the factory. One truckload of fruit costs NamJuice N$$250$ in transportation fees. Each truckload contains enough fruit to produce a maximum of $100$ litres of orange juice.

Trancor $($PTY$)$ Ltd does not however have sufficient capacity to transport the oranges required for the Ongwediva Fair$$s order. To overcome this problem NamJuice will enter into a short term agreement with another transport company, namely Baycor $($PTY$)$ Ltd to transport the oranges required for the Ongwediva Fair$$s order to the factory. Baycor $($PTY$)$ Ltd will charge NamJuice N$$350$ per truckload. Included in this price is the offloading of the fruit from the truck to the NamJuice$$s storage facility.

Baycor $($PTY$)$ Ltd will only transport the oranges for the special order. Baycor $($PTY$)$ Ltd$$s trucks can transport enough fruit for the production of $200$ litres of orange juice per load.

$3.$ Loading of fruit into the production process:

Semi$-$skilled labourers are used to load the oranges into the production process. To enable a fast and effective production process, $20$ labourers are employed to sort the oranges according to their quality and to load only those of satisfactory quality into the production process.

It takes the labourers $10$ minutes to sort and load enough oranges for one production run. Semi$-$skilled labourers are paid N$$120$ per hour and work only when they are scheduled and required.

$4.$ Production of the orange juice:

The production process is machine driven. $600$ litres of orange juice are produced per production run. Each production run takes $60$ minutes.

Variable overheads of N$$37$ per hour are incurred during the production process. Fixed production overheads allocated to NamJuice$$s total business operations are N$$60000$ per month.

Fixed costs are expected to increase if the Ongwediva Trade Fair$$s order is accepted.

The fixed production overheads allocated to NamJuice$$s operations, excluding the production of orange juice, amounts to N$$38000$ per month.

Normal production for orange juice is $36500$ litres per month. The total $($fixed and variable$)$ production overheads for the production of orange juice in August $2022($including the special order$)$ are expected to amount to N$$33411.$

$5.$ Supervision of production process:

Skilled labourers are employed to observe the production process to ensure that all activities comply with NamJuice$$s exceptional quality standards. Supervisors observe the total production run. NamJuice employs one supervisor for every $23850$ litres of fruit juice produced. Supervisors earn N$$10000$ per month.

The supervisors can be employed at any time. Training for new appointments takes place over $2$ days and costs N$$200$ per day. At the moment the quality supervisors can only manage the current production. If new supervisors are appointed, the contract will stipulate that they should work at least $4$ hours per week for at least one full month. These new supervisors will be appointed on a temporary basis only.

Current supervisors won$$t be retrenched if the production decreases.

$6.$ Packaging of the juice:

Every Juice product is packed into a $1\mathrm{.}5$ litre bottle. The bottles and lid consist of recycled plastic which costs $60$ cents per bottle. NamJuice$$s logo is attached to each bottle at an additional cost of $20$ cents per bottle.

The orange juice will be presented in glass containers at the Ongwediva Trade Fair. Taking this as well as the size of the order into account NamJuice has decided to make use of bigger

$5$ litre cartons to transport the fruit juice. TThese cartons will cost N$$1,20$ each.

Required:

Calculate the relevant variable production costs if the order is accepted.