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Question-03: Padma Company has idle capacity. Recently, Padma received an offer to sell 2,000 units of one of its products to a new customer in

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Question-03: Padma Company has idle capacity. Recently, Padma received an offer to sell 2,000 units of one of its products to a new customer in a geographic region not normally serviced. The offering price is tk. 10 per unit. The product normally sells for tk. 14. The activity-based accounting system provides the following information: The fixed activity rate for setups is tk. 50 per hour. Block of 100 hours of setup servicing should be taken. Thus, any expansion needs setup activity of 100 hours at a time. The price per hour is the fixed activity rate whereas machining hours don't need any extra block. Requirement: i. Compute the change in income for Padma Company if the order is accepted. Comment on whether the order should be accepted. (In particular, discuss the strategic issues.) ii. Suppose that the setup activity had 50 hours of unused capacity. How does this affect the analysis

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