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Think Big Ltd has received a special order for 2,000 units of its product X at a special price of $60. The product normally sells

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Think Big Ltd has received a special order for 2,000 units of its product X at a special price of $60. The product normally sells for $80 and has the following manufacturing costs: Per unit Direct materials $24 Direct labour 16 Variable manufacturing overhead 12 Fixed manufacturing overhead 20 Unit cost $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 products with a shortage of machine hours since one of its two machines is down - only 360 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 Selling price $5.00 $3.00 $5.00 Variable cost per unit $3.50 $2.00 $2.00 0.75 Machine hours per unit 1 0.25 Demand (units) 300 400 210 QS-a For making a decision on acceptance of the special order Calculate the effect on the company's short-term profit on accepting the order INIC Us BUV 400 210 CRE Q5-a For making a decision on acceptance of the special order: {U) Calculate the effect on the company's short-term profit on accepting the order, til) Determine the minimum price (in total and per unit) to charge in order to achieve an incremental profit of $20,000. (in Assuming the company is currently operating at full capacity, what effect will the order have on the company's short-term profit? (8 marks) MacBook Air Q5-b-i For 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. (9 Marks) Unanswered Q5-b-ii (ii) Calculate the total contribution margin earned based on your production plan determined in (1) above. (3 Marks) Unanswered

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