QUESTION 6 Neptune Company produces a single product. The company's production capacity is 10,000 units per month but it is currently producing only 6,000 units. The costs of producing and selling a single unit of this product at the company's current activity level of 6,000 units per month are: Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses The normal selling price is $20 per unit. $2.50 $3.00 $0.50 $3.75 $2.00 $1.00 The company has received a special order from Saturn Ltd for 3,000 units at a price of $7 per unit. No additional selling or administrative expenses will be incurred if the order is accepted. Required: (a) Should Neptune Company accept Saturn Ltd's special order? Show all workings. Justify your conclusion. (10 marks) (b) Briefly explain TWO qualitative factors that managers should consider when deciding whether to accept a special order. (4 marks)