Philco Electronics manufactures calculators in Fort Saskatchewan. They have a contract to supply the Jumbo Mart store in Calgary with a monthly supply of each calculator. Under normal circumstances Philco has the following monthly budget: Type of calculator it of Financial Statistical Graphing Selling Price ( $ per unit) 25.00 30.00 40.00 Variable Costs ($ per unit 10.00 18.00 16.00 Total Fixed Costs ($) 24,000 20,000 15,000 Contracted # Units per month for Jumbo Mart 500 500 300 Estimated Total Demand per month 1,200 1,000 500 # computer chips required per calculator 1.00 2.00 3.00 A tsunami in Thailand has destroyed a large chip manufacturer and reduced supply of computer chips in the market. As a result, for the next month Philco can only purchase 3, 160 suitable chips. 1. How would Philco allocate the 3,160 chips they have available next month? (6 marks) 2. Philco has been offered an additional 150 chips at a cost of $900. Should Philco purchase these chips? Explain. (4 marks)