QUESTION 11 The Swine Company has the capacity to produce 5000 units per year, its predicted operations for the year are as follows $80 000 Sales (4000 units @ $20 each) Manufacturing costs Variable Fixed Marketing and administrative costs Variable Fixed $5 per unit $10 000 $1 per unit $8000 The accounting department has prepared the following projected Income statement for the coming year for your decisions Sales $80 000 Variable costs Manufacturing ($5 * 4000) $20 000 Marketing (51 x 4000) 4000 24.000 Contribution margin $56 000 Fixed costs Manufacturing $10 000 Marketing 8000 18 000 Operating profit $38.000 Required (a) Should the company accept a special order for 500 units at a selling price of $8? Assuming that there are no variable marketing and administrative costs for this om the following projected income statement for the coming year for your decisions $80 000 Sales Variable costs Manufacturing (55 x 4000) Marketing ($1 x 4000) Contribution margin Fixed costs Manufacturing Marketing Operating profit $20 000 4000 24000 $56 000 $10 000 8000 18.000 $38.000 Required (a) Should the company accept a special order for 500 units at a selling price of Assuming that there are no variable marketing and acts for the order and that regular sales will not be affected, what is the impact of this decision on company profits? (10 Maris) (b) Suppose that the preceding order has a onetime setup fee of 51000, should the special order be accepted? Explain your answer. Marks to what other qualitative factors should be considered, and how would they impact your decision to accept the special order? (Mark) (d) Regular sales will reduce by 200 units if the special order was accepted. Disregarding the above questions as to what impact would this have on the companys deciso n? (5 Marks) For the toolbar.press ALT F10 (PC) or ALT+FNF30 (Mac) BI VS Paragraph Arial 14px 2 Ixo Click Save and Submit to save and submit. Click Save All Answers to see all and SMA Save and Sub