QUESTION 1 A. Mee Company produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 8,000 units per year is: ITEM RM Direct materials 2.50 Direct labour 3.00 Variable manufacturing overhead 0.50 Fixed manufacturing overhead 4.25 Variable selling and administrative expense 1.50 Fixed selling and administrative expense 2.00 The normal selling price is RM15.00 per unit. The company's capacity is 10,000 units per month. An order has been received from an overseas source for 2,000 units at the special price of RM12.00 per unit. This order would not affect regular sales and the company's total fixed costs. REQUIRED: If the order is accepted, how much will monthly profits increase or decrease? Support your answer with an analysis. B. The details of the company three product lines are as follows: Products B Selling price: RM50 RM40 RM30 Variable costs : RM20 RM20 RM20 Unit Contribution: RM30 RM20 RM10 Expected demand 1,000units 500units 600units To produce 1 unit of product, the direct labour hours for each product is: Product A Product B Product C 10 hours 5 hour 1 hour Due to unavailability of labour supply, for the forthcoming period, it is assumed that the overall shortage of labour hours is 1, 100 hours. REQUIRED: Determine the production mix to maximize the company's profit