QUESTION $6$

Fun Feet $($Pty$)$ Ltd manufactures Springbok socks from high$-$quality, durable fabric. Since

the Rugby World Cup, the demand for these socks has increased substantially. Two

styles of socks are available: ankle$-$length and high$-$rise.

The following information is available:

Cheslin Kolbe approached Fun Feet $($Pty$)$ Ltd two weeks before the start of the Rugby

World Cup to manufacture $200$ pairs of high$-$rise socks. He is willing to pay R$150$ per pair.

He would like each pair of socks to have his colleague's names vinyl printed above the

Springbok logo$.$ Fun Feet $($Pty$)$ Ltd would need to outsource the vinyl printing of the names

at R $40$ per pair. Acceptance of the special order will not impact the monthly fixed costs.

REQUIRED

$6\mathrm{.}1$ By way of calculation, show whether Fun Feet $($Pty$)$ Ltd has enough

capacity to accept the special order.

$6\mathrm{.}2$ Calculate the feasibility of the special request of Cheslin Kolbe. Clearly

distinguish between cash inflows and outflows. Conclude wether the

special order should be accepted.

$6\mathrm{.}3$ Comment on some of the possible consequences of your answer in $6\mathrm{.}2.$