Exotic Products, Inc., has just organized a new division to manufacture and sell designed chairs using exotic woods. The division's monthlu nnnes. fule below: layuc rroaucts regard all of its workers as full-time employees. The company has a long-standing nocosts in its fixed manufacturing overhead. The chairs sell for $300 engl the company includes its labor operations, the following activity was recorded: Units produced Units sold 5,200 Required a) Compute the unit product cost under: i) Absorption costing. AI ii) Variable costing. 45 b) Prepare an income statement for the month using absorption costing. 711300 [arks] [3 Marks] PART B [11 Marks] [7 Marks] Colombo Emeralds is considering a special order for 20 gold bracelets to be given as gifts to employees at a staff award dinner. The selling price of a gold bracelet is $400.12, and its unit product cost is $287,00 as shown below: Most of the manufacturing overhead is fixed and $14 of the overhead is variable. The customer who is interested in the special bracelet order would like special lace applied to the bracelets. This lace requires costing $600 that would have no other use once the order is completed. This order a special equipment on the company's regular sales and the order could be fulfilled using the company's existing no noffect Required What effect would accepting this order have on the company's net operating income if a special price of $300 is offered per bracelet for this order? Should the special order be accepted at this price? END OF QUESTION PAPER Exotic Products, Inc., has just organized a new division to manufacture and sell designed chairs using exotic woods. The division's monthlu nnnes. fule below: layuc rroaucts regard all of its workers as full-time employees. The company has a long-standing nocosts in its fixed manufacturing overhead. The chairs sell for $300 engl the company includes its labor operations, the following activity was recorded: Units produced Units sold 5,200 Required a) Compute the unit product cost under: i) Absorption costing. AI ii) Variable costing. 45 b) Prepare an income statement for the month using absorption costing. 711300 [arks] [3 Marks] PART B [11 Marks] [7 Marks] Colombo Emeralds is considering a special order for 20 gold bracelets to be given as gifts to employees at a staff award dinner. The selling price of a gold bracelet is $400.12, and its unit product cost is $287,00 as shown below: Most of the manufacturing overhead is fixed and $14 of the overhead is variable. The customer who is interested in the special bracelet order would like special lace applied to the bracelets. This lace requires costing $600 that would have no other use once the order is completed. This order a special equipment on the company's regular sales and the order could be fulfilled using the company's existing no noffect Required What effect would accepting this order have on the company's net operating income if a special price of $300 is offered per bracelet for this order? Should the special order be accepted at this price? END OF QUESTION PAPER