Exercise The Burr Electronics Ltd normally produces 150,000 units of K9 per year. Due to an economic downturn, the company has some idle capacity. K-9 sells for GH\&30 per unit. The firm's production, marketing and administrative costs at its normal capacity are: Requireq (i) Compute the company's operating income if the firm sold 110,000 units in 2013. (ii) For 2014, the company expects to sell the same number of units as it sold in 2013 , however, in a trade newspaper, the firm noticed an invitation to bid on selling K-9 to a state government. There are no marketing costs associated with the order if Burr Ltd is awarded the contract. The company wishes to prepare a bid for 40,000 units at its full manufacturing cost plus 25 pesewas per unit. How much should the company bid if Burr Ltd succeeds in getting the contract? What would be the effect on operating income? (iii) Assume the company is awarded the contract on January 2, 2014. In addition, it receives an order from a foreign vendor for 40,000 units at the regular price of GH30 per unit