XYZ company has annual productive capacity of 75,000units per year. Budgeted operating results for 2020 are as follows:

XYZ company has manual peoductive capacity of 75.000 per yetem operating results for 2020 me follow Sale 70.000 units $15 Varle costs Manufacturing 5.000 3.0) Selling (70,000 $065) Fixed Cost Manufacturing Selling Administrative $120,000 5.75,000 Show all your wings A wholesaler from another country wants to buy 4000 unit a price of $10 per unit. All fixed cost will remain within the relevant range. Variable maig costs would be the same per unit, but variable selling cost would increase by 51.50 per unit for the special order only REQUIRED 1. Determine whether the company should produce the special order 2. Assuming XYZ company's objective is to maximize proft, if the customer wants a special order of 10,000 units showed XYZ.com y accept or reject special order EXPLANATION A SOLUTION Notes to the questi A. When tackling question on special order it is very portant to consider does the company has the capacity to accept the order or there will be opportunity cost involved Remoning must be used on the format Sales MO Valecos Contributie Mar OT perint Decision will be based on incremental variation of CM. Ir the CM ince, it means the order can bring more profuby accepting the onder