the Sugarfreak Cupcake Company sells gourmet cupcakes to wholesale customers. Its baking facility the capacity to produce 900,000 cupcakes each month. Current production and sales are 600,000 cupcakes per month. The company charges $3.50 per cupcake. Cost information for the current activity level is as follows: Total variable cost that varies with number of units produced Direct materials $540,000 Direct labour $510,000 Total variable costs that vary with number of batches (20 batches @ $6,500 batch) $130,000 Fixed manufacturing costs $640,000 Fixed marketing costs $140,000 freak has just received a special one-time order for 300,000 cupcakes at $2.75 per cupcake. Accepting ne special order would not affect the company's regular business. Sugarfreak bakes cupcakes for its existing customer's in batch sizes of 30,000 cupcakes. The special order requires Sugarfreak to bake the cupcakes in 60 batches of 5,000 each. 1. What operating revenue would Sugarfreak earn/close) if it refuses the special order? (5 marks) REVENUE: TOTAL VARIABLE COST: TOTAL FIXED COST: FULL PRODUCT COST: OPERATING INCOME: 2. What additional operating revenue would Sugarfreak earn/lose) if it accepts the special order? (6 marks) NORMAL OPERATING INCOME: SPECIAL ORDER REVENUE: TOTAL SPECIAL-ORDER VARIABLE COSTS: TOTAL SPECIAL-ORDER FIXED COSTS: SPECIAL ORDER OPERATING INCOME: TOTAL OPERATING INCOME: 3. As the CFO of Superfreak would you accept the special order? Why? (2 marks)