Question 2 Part A A company has also received a special request to sell one of its products to a new customer for a discounted price of $12 per unit for 20,000 units. Details regarding the product cost is as follows: $ per unit Normal selling price 15 Direct materials 5 Hourly labour Other variable cost 2 Fixed cost The sales manager has rejected the offer from the customer as the offer price is below the total cost of $13 per unit and hence will make a loss of $1 per unit. He has requested your advice on this. You also confirmed with the production manager that spare capacity is available to produce the additional 20,000 unit. The production manager had also informed you that there is an additional shipping cost of $5,000 if the order is accepted. Required: a) Based on the information above, respond to the sales manager as to whether he should accept the special order on financial terms. (6 marks)