Jiambalvo Company produces a single product. The cost of producing and selling a single unit of this product at the companys normal activity level of 40 000 units per month is as follows:

Direct materials.	$38.80
Direct labour	9.70
Variable manufacturing overhead.	2.30
Fixed manufacturing overhead..	18.10
Variable selling and administrative expenses...	1.70
Fixed selling and administrative expenses.......	8.80

The normal selling price of the product is $81.10 per unit. An order has been received from an overseas customer for 3 000 units to be delivered this month at a special discounted price. This order would have no effect on the companys normal sales and would not change the total amount of the companys fixed costs. The variable selling and administrative expense would be $0.20 less per unit on this order than on normal sales. Direct labour is a variable cost in this company.

Required:

(a) Suppose the company has sufficient idle capacity to produce the units required by the overseas customer and the special discounted price on the special order is $75.30 per unit. By hwo much would this special order increase (decrease) the companys net operating income for the month? (2.5 marks)

(b) Suppose the company is already operating at capacity when the special order is received from the overseas customer. What would be the opportunity cost of each unit delivered to the overseas customer? (1.5 marks) (c) Assume now that the company does not have enough idle capacity to produce all of the units for the overseas customer and accepting the special order would require cutting back on production of 1000 units for regular customers. What would be the minimum acceptable price per unit for the special order? (rounded to the nearest two decimal places). (2 marks) (d) Identify THREE qualitative factors that Jiambalvo should consider before a final decision is made in part (c). (3 marks)