STUDENT NUMBER:

$19.$ Should the company aceept or reject this special offer and why?

a$)$ Aceept, because the operating income will increase by $$40,000.$

b$)$ Aceept, because the operating income will increase by $$100,000.$

e$)$ Reject, because the operating income will decrease by $$40,000.$

d$)$ Reject, because the operating income will decrease by sioo,$000.$

e$)$ None of these

$20.$ The minimum price for such a special offer that can be aceepted by the company should be higher than...

a$)$ $$15$

c$)$ $$12$

b$)$ $$3$

d$)59$

e$)$ None of these.

The questions $19-20$ wur iaformation given below

Anwar Sadat Company has been approached by a new customer with an offer to purchase $20,000$ units of its model AX$-3$ at a price of $$7$ each. The new customer is geographically separated from the company's other cuatomers, and existing sales would not be affected. The company normally produces $100,000$ units of $Ax-3$ per year but only plans to produce and sell $70,000$ in the coming year. The normal sales price is $$15$ per unit. Unit cost information for the normal level of activity is as follows:

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