Question 2 Teering Company produces smoothie blenders that it sells for $38 each. At full capacity. the company can produce 50.000 blenders a year. The costs of producing and selling 50,000 blenders are as follows: Cost per Blenders Total Costs Direct materials $13 $650,000 Direct manufacturing labor 4 250,000 Variable manufacturing overhead 2.5 125,000 Fixed manufacturing overhead Variable selling expenses Fixed selling expenses 739 6 300,000 150,000 2 100,000 Total costs $30.5 $1,575,000 Required: (a) Suppose Teering Company produces and sells 40,000 blenders At this level of production and sales, its fixed costs are the same as given in the preceding table. Siesta Company wants to place a one-time special order for 10.000 blenders at $22 each. Teering will incur no variable selling costs for this special order. Should Teering accept this one-time special order? Show your calculations and explain if fixed costs are relevant in your decision? (4 marks)