II$.$ A business, established to produce and sell golf balls all around the world. In the current period they decided to produce $2\mathrm{.}000\mathrm{.}000$ balls, but the marketing manager reported that they could sell only $1\mathrm{.}200\mathrm{.}000$ balls for $2S$ each. The costs of the business consist of: $(25$ Pts$)$

Direct Material:

Direct Labor:

Variable Factory Overhead:

$0,35$ S$/$Ball

Fixed Factory Overhead:

$0,22$ $$/$Ball

$0,08$$ Ball

Market Commissions Expenses:

$320\mathrm{.}000$$ Year

$0,15$$ Ball

Fixed Marketing and Administration Expense: $120,000$$ Year

A Japan enterprise offered a propasal to buy $500\mathrm{.}000$ balls for $0,75$$ each. Discuss if the proposal is acceptable or not. Prepare the Full Costing and Variable Costing Income Statements after having accepted the Japanese Company's offer.