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XXX Company manufactures a component that is used in electric vehicles. Although it has the capacity to manufacture 5,000 components a month without an increase in fixed costs, it typically manufactures and sells 4,500 components a month to 8 regular customers. The cost to manufacture one of the components is: Direct materials $14.00 Direct labour $35.00 Variable manufacturing overhead $1.00 Fixed manufacturing overhead allocated $22.22 {$100,000f4,500 components) Variable sales cost is $10.00 per component and xed sales and administration cost is $95,000 per month. The company sells the components for $111 each. XXX Company has been approached by a new customer. The customer wants to buy 1,500 components next month, but wants a special price of $70 per component. The variable sales cost of $10.00 per component will not apply to this customer. The customer has indicated that, if it is satisfied with XXX Company's component and service, it will seriously consider becoming a regularcustomer. XXX Company can increase manufacturing capacity to 7,000 components per month by signing a 2year minimum lease on a new factory for 572,000 per year