QUESTION 1: Wally Wacka is the owner of Wacker Industries, a company that manufactures cricket bats specifically designed for beach cricket. Each bat sells for $40. At capacity, the company can produce 10,000 bats a month. The cost of producing 10,000 bats are as follows: REQUIRED: a) Calculate the incremental profit / loss that Wacka would receive if he accepts the order? Show your workings in the space provided below. Total costs $ Incremental Revenue: $ Direct materials Direct production labour Variable production overhead Fixed production overhead Total costs Cost per bat 14.00 $ 4.00 $ 2.00 $ 5.00 $ 25.00 $ $ 140,000 40,000 20,000 50,000 250,000 Incremental Costs: $ $ Incremental Profit: The forecast for the summer ahead is wet and cold and Wacka expects this will have a negative impact on demand for beach cricket bats. Wacka expects demand to only reach 8,000 bats for the coming summer months. Wacka has just received a call from a potential customer who is setting up a beach cricket camp and has requested a one-off order of 2,000 bats at a special price of $21 each. b) Calculate the minimum price that Wacka would be willing to accept for the special order. Show your workings in the space provided below