Perfect Pucks Ltd. manufactures hockey pucks. Currently the company produces and sells

PART 1 (11 minutes, 6 marks) Perfect Pucks Ltd. manufactures hockey pucks. Currently the company produces and sells 8,000 pucks per year. Financial information follows: DIRECT MATERIALS $ DIRECT LABOUR $ VARIABLE MANUFACTURING OVERHEAD $ FIXED MANUFACTURING OVERHEAD $ VARIABLE ADMINISTRATIVE EXPENSES $ FIXED ADMINISTRATIVE EXPENSES $ SELLING PRICE PER PUCK $ MANUFACTURING CAPACITY 2.50 3.00 0.50 4.25 1.50 2.00 15.00 10,000 An order has been received from an amateur hockey league for 2,000 pucks at a price of $9.00 per puck. This special order would not affect regular sales. PART 1 - REQUIRED: a) Should the special order be accepted by Perfect Pucks Ltd.? Why? b) What is their minimum selling price per puck