Principles of Accounting 2 5 Required: 8 marks tol From the information given below, answer the following questions: 1. Should the Canada Company accept this special order? Show your calculations and specify why the order should be accepted or not to 2. What is the minimum price that may be accepted for a one-time special order (2) The Canada Company manufactures vacuum cleaners. Its manufacturing plant has the capacity to produce 22,000 items each month. The current production and sales are 20,000 items per month. The company normally charges $75 per vacuum cleaner. The cost information for the current activity level is as follows: Variable costs may vary with number of units produced Direct materials $350 000 Direct manufacturing labour 375 000 Variable manufacturing 100 000 Fixed manufacturing costs 300 000 Fixed marketing cost 275 000 Total cost $1400 000 The Canada Company has just received a special one-time-only order for 2,000 vacuum cleaners at $50 per item. Accepting the special orde would not affect the company's regular business