Samia Ltd. produces jewelry boxes for retail customers such as Walmart. One of their most popular products has the following selling price and costs:

Description	Dollar value per unit
Selling price	$65.00
Direct materials	$13.00
Direct labour	$11.70
Variable overhead	$10.40
Fixed overhead	$9.10
Sales commission	$3.25
Income per unit	$17.55

The company, due to the impact of a world-wide pandemic, is not at capacity. They also have some non-manufacturing fixed costs (such as sales and administration costs).

They have provided the following details:

Capacity (units)	28,000
Production (units)	22,400
Fixed non-manufacturing costs (annual)	$98,280

Zunish Ltd., who has not bought from Samia Ltd. before, has offered to buy jewelry boxes for a special event that Zunish is managing. Zunish Ltd. is from a geographic region outside the area normally serviced by Samia Ltd. Zunish Ltd. has agreed to pay the transportation costs. In addition, because no sales person was involved, there will be no sales commission paid on this sale.

Other details of Zunish's offer are as follows:

Total units required	4,200
Purchase price per unit	$37.00
Transportation costs / unit	$1.60

Use the above information to answer the following questions.

Question 44 (1 point)

If Samia Ltd. accepts this order, will operating income increase, decrease or stay the same?

Question 44 options:

a)	Stay the same

b)

Increase

c)

Decrease

Question 45 (3 points)

By how much will operating income change if the order is accepted?

Enter your answer as a positive number.

Question 46 (1 point)

Assume, INSTEAD, that the order from Zunish Ltd. was obtained through a sales person so sales commission has to be paid. In addition, Zunish Ltd. has asked Samia Ltd. to pay all transportation costs. Given this new information, will Samia's operating income increase, decrease or stay the same?

Question 46 options:

a)	Stay the same

b)

Increase

c)

Decrease

Question 47 (2 points)

Given this new information, by how much will operating income change if the order was accepted now?

Enter your answer as a positive number.

Question 48 (3 points)

What qualitative factors support accepting the order from Zunish Ltd.?

Choose all that apply. MAY HAVE MORE THAN 1 ANSWER** Explain why please.

Question 48 options:

a)	Increase the company's brand awareness in the current geographical region.

b)	May have a negative impact on regular business.

c)	Reduction in idle capacity.

d)	Improve employee moral.

e)	Reduce need to lay off employees.