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$12 8 3 Question No. 6 (4 Marks): A customer has asked your company to supply 10,000 units of product "A" (after some modifications) for $30 per unit. The normal selling price of this product is 535 per unit. The normal unit product cost of product "A" is computed as follows: Direct materials Direct labor Variable manufacturing overhead 5 Fleed manufacturing overhead Total 528 The special order would have no effect on the company's totalfined manufacturing overhead costs. The customer would like some modifications made to product "A" that would increase the varable costs by 52 per unit and that would require one time investment of $20,000 in special equipment that would have no salvage value. This special order would have no effect on the company's other sales. The company has sufficient spare capacity for producing the special order Resuired Determine the effect on the company's total net operating income of accepting the special order b) Should the company accept the special order or not? Explain