Instruction: There are two questions in this part. Answer the questions with a single MS Office Word/Excel file and upload it here. Alternatively, you may answer the questions manually and scan or take a picture of your work and upload it here. Question 1. Old Skool Inc. ("Skool") manufactures retro arcade-style video games. A required component to these are the wooden cabinets that house the display screen, joystick and other electronic components. Skool's cost per unit to make 300 cabinets is as follows: Direct materials $25.50 Direct labour 48.00 Variable overhead 12.00 Fixed overhead 15.00 Total manufacturing cost $100.50 Suppose Custom Designs Inc. ("Custom") offers to sell decks to Skool for $75 each. Once received, Skool will still need to apply custom decals to the cabinet, as per customer specifications. These decals cost $12.00 per unit, on average and will require $5.00 per unit in direct labour to apply. Skool's accountants predict that purchasing the decks from Custom will enable the company to avoid $2,500 of fixed overhead. Required: Determine if Skool should buy the decks or continue to make them. Support your answer with a differential analysis of the costs of each option. Questions 2 Jenks Industries is considering a special order from an overseas customer for 10,000 units at a price of $38.00 per unit. Jenks's product normally sells for $48.00 per unit and has the following costs per unit for producing and selling 80,000 units: Direct materials $21.00 Direct labour 7.00 Variable manufacturing overhead 2.25 Fixed manufacturing overhead 3.75 Variable selling & admin expenses 1.50 Fixed selling @ admin expenses 2.50 Total costs 37.00 If Jenks accepts the order, Jenks will incur one-time legal and accounting fees of $17,000 in connection with the order: other fixed costs would be unaffected and variable selling & administrative expenses would be avoided Required: Assume Jenks has capacity to produce 100,000 units and is currently producing 80,000. Should the special order be accepted? Support your answer with a proper analysis