Please organize your answers and provide all calculations where necessary in order to earn maximum marks.

The Immanuel Company has the capacity to produce 75,000 bins per month.

-Fixed production costs are $120,000 per month, and the company currently

sells70,000 bins at $13 each based on the following unit costs:

-Variable productioncost$5.60

-Fixed production costs1.60[Based on capacity]

-Variable sellingexpense1.00

The Immanuel Co has just obtained a request for aspecial orderof 6,000 binsto be shipped at the end of the month at a selling price of $10 each. The priceand the terms are open to negotiation.

If the special order is accepted, the company willavoidthe selling expenses, butshipping costs of $0.30 per unit will have to be added.

Required:

1. List 5 non-financial/financial issues that should be considered before accepting or rejecting this order. Should they accept the order? With what conditions?
2. If Immanuel accepts the special orderas is, what will be the increase in monthly net operating income?
3. What is the lowest price Immanuel should accept on this special order without

losing money

1. If Immanuel had regular sales of 71,000 bins per month, what would be the

change in monthly operating income if it accepted the special order?