(i) Determine whether the offer should be accepted by the firm or not.

A cycle tyre manufacturing company has been approached by a large shopkeeper to buy 10,000 tyres at Rs 32 each. Delivery must be made within 30 days. The production capacity of the company is 64,000 units per month and there is inventory of 2,000 tyres on hand. Expected sales at regular prices for the coming month are 60,000 tyres. It is estimated by the sales manager that about 50 per cent of sales lost during the month would be made up in later months. Price and cost data per unit are as follows: Selling Price Tk. 48.00 Variable Cost Production Selling Tk. 06.00 TK. 30.00 Contribution Tk. 18.00 Tk. 24.00 The variable selling costs on the special order would be Tk. 1.00 per unit