of the company’s fixed costs. The variable selling and administrative expensewould be R1.90 less per unit on this order than on normal sales. Direct labour is a variable cost in this company. . Suppose there is ample idle capacity to produce the units required by theoverseas customer and the special discounted price on the special order isR6050 per unit. By how much would this special order increase (decrease)the company’s net operating income for the month? a) (R4 200) b) (R84 300)0) (R15 900)d) (R27 300) (3). Suppose the company is already operating at capacity when the special order is received from the overseas customer. What would the opportunity cost ofeach unit delivered to the overseas customers? a) R720b) R33.40c) R5.80d) R7.70 (3) . Suppose there is not enough idle capacity to produce all of the units for theoverseas customer and accepting the special order would require cutting backon production of 1 600 units for regular customers. The minimum acceptableprice per unit for the special order is closest to: a) R6200b) R5070c) R6730 d) R5031 (3)
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