Zeus Corporation produces electric cars. A few weeks ago, the company received a special order request from Hera, Inc. Hera wants to market an electric car similar to one of Zeus's and has offered to buy 11,000 units if the order can be completed within three months. Cost data for Zeus electric car model no. 43 as follows: Direct materials .. $ 8.20 Direct labor: 0.25 hour at $5.00 .. . Total 1.25 manufacturing overhead:0.5 hour at $20 ..... 10.00 Total .. $19.45 Additional data: Normal selling price model no. 43 is $26.50; however, Hera bids Zeus only $15.75 due to the large amount he wants to buy. Hera required design modifications that allowed a $3.50 reduction in direct materials costs. Production supervisor Zeus noted that the company would incur $1,700 in additional Installation costs and would have to purchase $1,400 of special equipment to manufacture these units. The device will be discarded once the special order is completed. Total factory overhead costs are assigned to production at a rate of $20 per machine hour. This figure is based in part on a budgeted annual fixed overhead of $900,000 and a planned production activity of 90,000 machine hours (7,500 per month). Zeus will allocate $1,800 of existing fixed administrative costs for the order as "part of the cost of doing business." Asked: 1. Assume that current sales will not be affected. Should the order be accepted from a financial point of view? Show calculations. 2. Assume that Zeus' current production activity consumes 70 percent of its planned machine hour activity. Can the company take orders and meet Hera's deadlines? 3. What options might Zeus consider if management really wanted to do business with Hera with the hope of building a long term relationship with the company