Q$.$ No$.1($a$).$ The manufacturing capacity of Bagmati Company's plant facility is $60,000$ rotators per quarter.

Operating results for the first quarter of this year are as follows.

A foreign distributor has offered to buy $30,000$ units at Rs$.9$ per unit during the second quarter of this

year. Domestic demand is expected to remain the same as in the first quarter.

Required:

$($a$)$ Determine the impact on operating income if Bagmati accepts this order. Assume that if the company

accepts the order, it foregoes sales to regular domestic customers.

$($b$)$In the above result $($a$),$ what other considerations are relevant in this decision?

$($c$)$ In the above result $($a$),$ what should be the minimum acceptable offer price?

$($d$)$Assume that Bagmati decides to run an extra shift so that it can accept the foreign order without

forgoing sales to its regular domestic customers. The proposed extra shift would increase capacity

Bagmati operates the extra shift and accepts the export order.

$($e$)$ In the above result $($d$),$ what other considerations are relevant in this decision?