Q2: Universal Gaming is a leading producer of gaming PCs. The annual capacity of the company is 100,000 PCs. The company currently produces and sells 8,000 PCs per year, a quantity that has been constant over the past three years. Based on the budget, the accounting department has calculated the following unit costs for the PCs: Direct materials Direct labour Manufacturing overhead (fixed and variable) Selling and Admin (fixed and variable) Total unit cost $80 20 20 30 10 140 Page 2 of 5 The company's budget includes $90,000 in fixed manufacturing overhead and $20,000 in fixed selling and administrative expenses. The PCs sell for $300 each. Required 1- Champions PC, has approached Universal Gaming with an offer to buy 3,000 PCs during the coming year. Given the size of the order, Champions PC has requested a 30% discount on the normal selling price. Should Universal PC accept this offer? 2-Are there any qualitative considerations that need to be addressed? Explain 3- Return to the original data. Major PC has just signed a contract with the government to replace all its PCs. Major PC needs 50,000 PCs to complete the job and has offered to buy them from Universal Gaming at a price of $130 per PC. Major PC will pick up the PCs at Universal Gaming's plant, so the company will not pay the $2 per PC shipping charge (included in the selling expenses). Should Universal Gaming accept this offer? Min