Think Big Ltd has received a special order for 2,000 units of its product X at a special price of $60. Product X normally sells for $80 and has the following manufacturing costs: Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Unit cost Per unit $24 16 12 20 $72 Currently the company has excess capacity to fill the order without harming normal production and sales. All fixed overhead is unavoidable. The production department is currently facing a constraint of resources on producing three other products. Unfortunately it has a shortage of machine hours since one of its two machines is down, and therefore only 360 machine hours are available this month. The selling price, costs, labour requirements, and demand of the three products are as follows: Product A Product B Product C Selling price $5.00 $3.00 $5.00 Variable cost per unit $3.50 $2.00 $2.00 Machine hours per unit 0.75 0.25 1 Demand (units) 300 400 210 Required: (a) For the purposes of making a decision on acceptance of the special order: (i) Calculate the effect on the company's short-term profit on accepting the order. (ii) Determine the minimum price (in total and per unit) to charge in order to achieve an incremental profit of $20,000. (iii) Assuming the company is currently operating at full capacity, what effect will the order have on the company's short-term profit? (8 marks) (b) For the purposes of making a decision on prioritization of products when the machine is down: (i) Determine the units of each products to be produced and sold to maximise profit. (ii) Calculate the total contribution margin earned based on your production plan determined in (b)(i) above. (12 marks)