Question 1- Complete the Schedules (16 marks) All three scenarios below are independent of each other. Marks are awarded for all steps of the calculation, not just the final answer. Chocolate Delight Company (CDC) makes holiday gift baskets that consist of different types of chocolate-based treats. The firm estimates the following costs associated with the production of a single gift basket when operating at full capacity: Variable Costs Direct materials $18.20 Direct labour $10.92 Manufacturing overhead $14.33 Sales commissions: $5.00 Fixed Costs Manufacturing Overhead $16.00 $12.50 Selling & Administration CDC can produce 200 baskets a day (4,000 baskets a month) when they are operating at full capacity. CDC runs at full capacity every month of the year and produces 48,000 baskets annually. The gift baskets sell for $90.00 each. Smiles For All (SFA) is a catering company specializing in large corporate events. SFA has asked CDC to produce 1,000 custom gift baskets for a large event that they are hosting on December 18, 2023 SFA is willing to pay $85.00 for each custom basket. The cost to produce a custom basket will be $42.55 each. If this special order is accepted, CDC will have to dedicate five (5) days at full capacity to the production of the SFA special order. During this time, no regular holiday gift baskets will be able to be produced. Questions a) If CDC accepts the special order, what will be the impact to their Operating Income? What other considerations should CDC consider before accepting this offer? b) Assume that the special order from SFA is only for 800 units and CDC could still produce 200 of their regular gift baskets. If CDC accepts the special order of 800 units, what will be the impact to their Operating Income? c) Assume that in order for CDC to accept the special order, they will have to purchase an industrial chocolate mixer. Their current mixer has a book value of 46,500, a remaining useful life of five years and a residual value of $2,000. The new industrial mixer would cost $53,750 but would reduce the variable cost of the special order items by 50%. The new mixer would also have a remaining useful life of five years at which time it could be sold for $0. If CDC purchases the new equipment and is willing to work with SFA, what is the minimum number of units that the special order must be for, in order for CDC to realize a profit on the special order?