Genius Kids is a factory that manufactures toys in Petaling Jaya. In 2019, the business produced and sold 32,000 units of toys with the price of RM14 cach. Genius Kid's variable statement of profit or loss for the year ending 31 December 2019, contains the following data: Genius Kids Statement of Profit or Loss For The year Ending 31 December 2019 RM Sales revenue 448,000 Variable expenses Manufacturing 96,000 Marketing and administrative 12.000 Total variable expenses 208.000 Contribution margin 240.000 Fixed expenses Manufacturing 125.000 Marketing and administrative 94.000 Total fixed expenses 219.000 Net income 21.000 Continued... 35 PATOS INTRODUCTION TO COST AND MANAGEMENT ACCOUNTING 14 OCTOBER A customer, Happy You Sdn Bhd makes a special order of 5,300 toys from Genius Kids at the price of RM9. Acceptance of the order will not increase Genius Kids's variable marketing and administrative expenses. Genius Kids also has extra production capacity to fulfil the order REQUIRED a) Identify cach cost in the statement of profit or loss as cither relevant or irrelevant to Genius Kids decision to accept or reject the special order. (4 marks) b) Calculate the total relevant revenues from the special order. (4 marks) c) Calculate the total relevant costs from the special order. (7 marks) d) Calculate the change in operating income if the special order is accepted. (4 marks) c) Should the special order be accepted? Why? (3 marks) f) State three other factors that the business should consider before accepting the special order (3 marks) Part Genius Kids is a factory that manufactures toys in Petaling Jaya. In 2019, the business produced and sold 32,000 units of toys with the price of RM14 each. Genius Kid's variable statement of profit or loss for the year ending 31 December 2019, contains the following data: Genius Kids Statement of Profit or Loss For The year Ending 31 December 2019 RM Sales revenue 448.000 Variable expenses Manufacturing 96,000 Marketing and administrative 112.000 Total variable expenses 208.000 Contribution margin 240.000 Fixed expenses Manufacturing 125.000 Marketing and administrative 94.000 Total fixed expenses 219.000 Net income 21.000 Continued... KY PATO INTRODUCTEN TO COST AND MANAGEMENT ACCOUNTING 14 OCTOBER 2120 A customer, Happy You Sdn Bhd makes a special order of 5.300 toys from Genius Kids at the price of RM9. Acceptance of the order will not increase Genius Kids's variable marketing and administrative expenses. Genius Kids also has extra production capacity to fulfil the order. REQUIRED a) Identify each cost in the statement of profit or loss as either relevant or irrelevant to Genius Kids decision to accept or reject the special order. (4 marks) b) Calculate the total relevant revenues from the special order. (4 marks) c) Calculate the total relevant costs from the special order. (7 marks) d) Calculate the change in operating income if the special order is accepted. (4 marks) c) Should the special order be accepted? Why? (3 marks) f) State three other factors that the business should consider before accepting the special order