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Question 1 Fast & Furious Technology (FFT) sells computer printers for RM380 per unit. Unit product costs are: DirectmaterialsDirectlabourManufacturingOverheadRM45AspecialOrdertopurchase15,000unitsofprintershasRM190RM30 A special order to purchase 15,000
Question 1 Fast \& Furious Technology (FFT) sells computer printers for RM380 per unit. Unit product costs are: DirectmaterialsDirectlabourManufacturingOverheadRM45AspecialOrdertopurchase15,000unitsofprintershasRM190RM30 A special order to purchase 15,000 units of printers has recently been received from another company at the price of RM350 and FFT has the idle capacity to fiil the order. FFT will incur an additional RM6 per printer for additional labor costs due to a slight modification the buyer wants to be made to the original product. Onethird of the manufacturing overhead costs are fixed and Required: Should FFT accept or reject the special order? Show the working on the decision of FFT on the special order. (10 Marks)
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