The following information applies to the questions displayed below. Mercury Skateboard Company manufactures skateboards. Several weeks ago, the firm received a special order inquiry from Venus, Inc. Venus desires to market a skateboard similar to one of Mercury's and has offered to purchase 11,000 units if the order can be completed in three months. The cost data for Mercury's Champion model skateboard follow. $ 16.40 Direct material Direct labor:.25 hours at $18.00 Total manufacturing overhead 4.50 20.00 40.90 5 machine hours at $40.00 Total The following additional information is available .The normal selling price of the Champion model is $53.00; however, Venus has offered Mercury only $31.50 because of the large quantity it is willing to purchase. . Venus requires a modification of the design that will allow a $4.20 reduction in direct-material cost. . Mercury's production supervisor notes that the company will incur $7,400 in additional setup costs and will have to purchase a $4,800 special device to manufacture these units. The device will be discarded once the special order is completed. Total manufacturing overhead costs are applied to production at the rate of $40 per machine hour. This figure is based, in part, on budgeted yearly fixed overhead of $1,500,000 and planned production activity of 60,000 machine hours (5,000 per month) Mercury will allocate $3,600 of existing fixed administrative costs to the order as "... part of the cost of doing business." value 3.33 points Assume that Mercury's current production activity consumes 70 percent of planned machine-hour activity. Calculate the current available machine-hours 2-a. urrent available machine-hours 2-b. Can the company accept the order and meet Venus' deadline? O Yes O No value: 3.33 points 3. What options might Mercury consider if management truly wanted to do business with Venus in hopes of building a long-term relationship with the firm? (Select all that apply.) Completely ignore the additional setup costs and the new device costs, as these are fixed in nature Working overtime Outsourcing some units Acquiring more machine capacity Sacrificing some current business in the hope that a long-term relationship with Venus can be established and proves to be profitable