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PART B On 15 May 2024, Kiya and Motsie Ltd has been offered a special order of 5 000 water-proof work shorts in yellow, fluorescent
PART B On 15 May 2024, Kiya and Motsie Ltd has been offered a special order of 5 000 water-proof work shorts in yellow, fluorescent colour and with reflective visibility tape. The current manufacturing costs of the water-proof work shorts are: Direct Materials: $22 per short Direct Labour: $26 per short Variable Overheads: $12 per short Fixed Overheads (total) $ 70 000 Details of the offer are: Total offering price $ 395 000 Shipping cost: $2.50 per short To decide whether to accept the special order, Jay approached you. REQUIRED: You are meeting Jay for lunch next week and he is expecting you to provide him with: a. The financial implication of accepting the special order. Show all workings. b. Three non-financial considerations he needs to take into account in deciding whether to accept the special order. Justify each of the three considerations
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