Local Sports Ltd manufactures cricket bats for the domestic market and sells each at a price of $60. The following typical monthly operating results were reported while operating at 90% of the factory capacity: sales $ 5,400,000 Cost of sales Selling and administrative expenses Net profit $3,600,000 $ 360,000 $ 1440,000 The fixed costs components for the typical month were for Cost of Sales, $900,000 and for Selling and administrative expenses, $180,000. Local Sports Ltd receives a special export order for 10,000 bats at $35 each. Acceptance of the order would increase variable selling and administrative expenses by $0.40 per unit because of shipping costs but would not increase fixed costs and expenses. Required: 1. Does Local Sports Ltd have the capacity to serve the export order? Show calculations to Justify your answer 2. Provide calculations to justify whether Local Sports Ltd should accept or reject the special order. 3. What is the minimum selling price on the special order to produce an incremental profit equivalent to 25% of variable costs per bat