Please show working out

10.8 The GB Company manufactures a variety of electric motors. The business is currently operating at about 70 per cent of capacity and is earning a satisfactory return on investment. International Industries (II) has approached the management of GB with an offer to buy 120,000 units of an electric motor. Il manufactures a motor that is almost identical to GB's motor, but a fire at the Il plant has shut down its manufacturing operations. Il needs the 120,000 motors over the next four months to meet commitments to its regular customers; Il is prepared to pay 19 each for the motors, which it will collect from the GB plant. GB's product cost, based on current planned cost for the motor, is: Direct materials Direct labour (variable) Manufacturing overheads Total 5.00 6.00 9.00 20.00 Manufacturing overheads are applied to production at the rate of 18.00 a direct labour hour. This overheads rate is made up of the following components: Variable factory overhead 6.00 Fixed factory overhead - direct 8.00 - allocated 4.00 Applied manufacturing overhead rate 18.00 Additional costs usually incurred in connection with sales of electric motors include sales commissions of 5 per cent and freight expense of 1.00 a unit. In determining selling prices, GB adds a 40 per cent mark-up to the product cost. This provides a suggested selling price of 28 for the motor. The marketing department, how- ever, has set the current selling price at 27.00 to maintain market share. The order would require additional fixed factory overheads of 15,000 a month in the form of super- vision and clerical costs. If management accepts the order, 30,000 motors will be manu- factured and delivered to Il each month for the next four months. Required: (a) Prepare a financial evaluation showing the impact of accepting the Il order. What is the minimum unit price that the business's management could accept without reduc- ing its operating profit? (b) State clearly any assumptions contained in the analysis of (a) above and discuss any other organisational or strategic factors that GB should consider