Fedora Industries Ltd$.$ has been approached by a customer who wishes to purchase $51000$ units of its product at $ $53$ per unit. The customer requires delivery within one month. The company has capacity to produce $344,000$ units per month and has $9000$ units currently in stock. Sales to Fedora$\text{'}$s regular customers are forecast at $324000$ units for the upcoming month. The sales manager has indicated that if the company accepts the special$$ order, it would be able to recover $40\%$ of the sales lost to regular customers. Units sold through normal distribution channels have a selling price of $ $63$ per$$ unit, and the gross margin earned on each unit is $ $24.$ Selling and administration costs total $ $16$ per unit.

A further analysis determined that the variable manufacturing costs of the regular units are $ $36$ per unit with variable selling costs of $ $12$ per unit. Because of the nature of the special$$ order, the selling costs will be reduced to $ $7$ per$$ unit, of which is all variable costs

Requirement $1.$ Should Fedora accept the offer from the$$ customer?

$$First$,$ determine the opportunity cost from lost sales and the amount gained from the special order. Answer the following questions.

What is the opportunity cost from the lost sales?

What is the amount gained from the special order?