Manufactures a variety of tool boxes. The firm is currently operating at 80% of its full capacity of 7,500 machine hours per month. Each unit requires 30 minutes of machine time. Its sales manager has been looking for special orders to make productive use of the excess capacity. KRS Ltd., a potential customer, has offered to buy 10,000 tool boxes at $7.50 per box, provided that the entire quantity is delivered in two months. The current per-box cost data are as follows: Direct materials $2.50 Direct labour (1/2 hour at $6.00/hour) 3.00 Total manufacturing overhead 2.00 Total unit product cost $7.50 Both fixed and variable overhead are allocated using direct labour hours as a base. Variable overhead is $1.50 per direct labour hour. Without the order, Local would have enough business to operate at 6,000 direct labour hours in each of the next two months. The regular selling price of the tool boxes is $10.50. A sales commission of 50 cents per unit is paid to sales representatives on all regular sales. No additional selling or administrative expenses are anticipated on account of accepting this special order and no commissions will be paid on this special order. The production manager is concerned about the labour time that 10,000 boxes would require. She cannot schedule overtime because Local has a policy against it. KRS will not accept fewer than 10,000 tool boxes. Therefore, in order to fill the special order, it would be necessary for Local Company to divert some of its regular sales to the special order. List and briefly discuss at least two qualitative issues regarding this order. Should Local accept the order