Venice Company produces a handle with the following unit cost (excludes selling cost): Direct Materials $2.00...

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Venice Company produces a handle with the following unit cost (excludes selling cost): Direct Materials $2.00 $1.00 Direct Labour Variable Overhead $3.00 Fixed Overhead Unit Cost $2.00 $8.00 The production capacity is 31,000 units per year. Because of reduced demand, the company expects to produce only 18,000 handles for the coming year. The company also has fixed selling costs totaling $520,000 per year and variable selling costs of $14.00 per unit sold (which relates to the sales commission on each unit sold). The handle normally sells for $78.00 each. At the beginning of the year, a customer from a geographic region outside the area normally served by the company offered to buy 10,200 handles for $66.00 each. The customer also offered to pay all transportation costs as they are outside of the normal region that Venice sells to. Since there would be no sales commissions involved, this order would not have any variable selling costs. Required: Use the above information to answer the following questions about this special order. Venice Company produces a handle with the following unit cost (excludes selling cost): Direct Materials $2.00 $1.00 Direct Labour Variable Overhead $3.00 Fixed Overhead Unit Cost $2.00 $8.00 The production capacity is 31,000 units per year. Because of reduced demand, the company expects to produce only 18,000 handles for the coming year. The company also has fixed selling costs totaling $520,000 per year and variable selling costs of $14.00 per unit sold (which relates to the sales commission on each unit sold). The handle normally sells for $78.00 each. At the beginning of the year, a customer from a geographic region outside the area normally served by the company offered to buy 10,200 handles for $66.00 each. The customer also offered to pay all transportation costs as they are outside of the normal region that Venice sells to. Since there would be no sales commissions involved, this order would not have any variable selling costs. Required: Use the above information to answer the following questions about this special order.