QUESTION 7 Olympic Limited produces golf disc which it normally sells to retailers for RM'lr each. The cost I RM I Direct materials 10,000 I Direct labour 30.000 I Variable manufacturing overhead 20,000 I Fixed manufacturing overhead 40.000 I Total cost 100.000 Olympic also incurs 5% sales commission (RMO.35) on each disc sold. Limanto offers Olympics RM4.80 per disc for 5.000 discs Limanto would sell the disc under its own brand name in foreign markets not yet served by Olympic. If Olympic accepts the offer. its fixed overhead will increase from RM40,000 to RM46.000 due to the purchase of a new imprinting machine. No sales commission will result from the special order. INSTRUCTIONS: (i) Prepare an incremental analysis for the special order. (CLOS. CB) (iil Should Olympic accept the special order? Why or why not? (CLOB. C4) QUESTION 8 Martinez Industries manufactures toasters. For the first 8 months of 2020. the company reported the following operating results while operating at 75% of plant capacity: RM I Sales (350.000 units) 4.375.000 I Cost ofgocd sold 2.500.000 I Gross prot 1,775,000 I Operating expenses 840.000 I Net income 935000 I Topic 11 : Relevant Costs For Decision Making I M025 Cost of good sold was 70% variable and 30% xed; operating expenses were 80% variable and 20% fixed. In September, Martinez receives a special order for 15,000 toasters at RM'HSU each from Luna Company. Acceptance of the order would result in an additional RM3.000 of shipping costs but no increase in xed costs. INSTRUCTIONS: (i) Prepare an incremental analysis for the special order. (CLUE). 03) (ii) Should Martinez accept the special order7Why or why not? ((103.04) QUESTION 9 Ahlan Enterprise produces two products. A and B. using the same labour hours. Product A requires 3 labour hours per unit and sells for RM'SO per unit. while product B requires 5 labour hours per unit and sells for RM'm per unit. Rate for direct labour for an hour is RM10. The company has already produced 2,000 units of product A and 1,000 units of product B for January. Due to shortage of workers in February only 10.000 labour hours will be available. Required: a. Decide what is the limiting factor for this company and show the shortfall for February. 0. Calculate contribution margin per limiting factor unit for product A and B. c. Show the planning schedule for product A and B production