Mercury Skateboard Company manufactures skateboards. Several weeks ago, the firo inquiry from Venus Ltd. Venus wants to market a skateboard similar to one of Mer Special order: financial and production considerations: manufacturer ercur P19.34 for Mercury's to purchase n ooo units if the order can be completed in three months. The cost datz 5 and has Champion model skateboard are: Direct material Direct labour (0.125 hours@ $18 per hour) Total manufacturing overhead: (0.5 machine hours $40 per hour) Total $ 8.20 2.25 10.00 20.45 The following additional information is available: $15.75 because of the large quantity it is willing to purchase Venus requires a modification of the design that will allow a $2.10 reduction in dir " Mercury's production supervisor notes that the company will incur $3700 in additi The normal selling price of the Champion model is $26.50; however, Venus has - and will have to purchase a $2400 special device to manufacture these units. The d discarded once the special order is completed. The device will be This figure is based, in part, on budgeted yearly fixed overhead of $750 o00 and pla activity of 60 000 machine hours (50oo per month). Mercury will allocate $1800 of existing fixed administrative costs to the order as doing business' Total manufacturing overhead costs are applied to production at the rate of $20 'part of the cost of Required: Should the order be accepted from a financial Assume that present sales will not be affected. of view. That is, is it profitable? Why? Show calculations. Point 1