Question 1: The Lucy -ite company makes acrylic plaques for employees of he week and heroes of labo. . Its manufacturing plant has a practical capacity of 10,000 plaques per month. Current production and sales are 7,500 units per month The company normally charges $150 per plaque . Cost information f . the cur. ent activity level is as follows: Variable costs that vary with numwer of units produced Lirect materials $ 262 500 Direct manufacturing labor 500,000 Variable costs (setups, materials handling. quality control. etc.) that vary with number of batches 150 * $500 per batch 15,000 Fixed manufacturing costs 275,000 Fixed marketing costs 175,000 Total Costs $ 1,087,500 Lucy -ite has just received a special one -time -only order for 2,500 plaques at $ 100 per unit accepting the special order would not affect the company's prices for current sales . Lucy -ite currently produces the output for its existing customers in batch sizes of 50 plaques (150 batches x 50 plaques per batch = 7,500 plaques ). The special order requires Lucy -ite to make the plaques in 25 batches of 100 each . The increased batch size applies only to the special order Required : a . Should Lucy -ite accept this special order ? Show your calculations. What are non-cost considerations you would want to include in your discussion (even if you cannot quantify those , and thus they ultimately can't affect your decision )? b Suppose plant capacity were only ,000 plaques instead of 10,000 plaques each month . The special order must either be taken in full or rejected completely. Should Lucy -ite accept the special order ? Show your calculations. C. As in part 1, assume that monthly capacity is 10,000 plaques. Lucy-ite is concerned that if it accepts the special order, its existing customers will immediately demand a price discount of $10 in the month in which the special order is being filled. They would argue that Lucy-ite capacity costs are now being spread over more units and that existing customers should get the benefit of these lower costs. should Lucy -ite accept the special order under these conditions ? Show your calculations