Answer Happy

Hide Vimeo Play B... ● Embed your form .... C Hide product prices Open with QUESTION 3 Case 1: Print Expert produces a variety of products that carry the logos of sport teams. The company recently received a special order inquiry from Harimau Malaya to produce 4,000 jerseys of popular players of the team for RM28 per unit. The following information is available: The normal selling price of sport jersey is RM45 per unit. Muntinlau Tal com... Cost to produce a jersey: direct materials, RM8; direct labour, RM12 (2 hours at RM6 per hour); and manufacturing overhead, RM10 (2 hours at RM5 per direct labour hour). Case 2: Harimau Malaya requires a design modification that will allow a RM2 reduction in direct- material cost. Print Expert's production supervisor notes that the company will incur RM8,700 in additional set-up costs and will have to purchase a RM3,300 special device to manufacture these special order units. The device will be discarded once the special order is completed. Total manufacturing overhead costs are applied to production at the rate of RM5 per labour hour. This figure is based, in part, on budgeted yearly fixed overhead of RM84,000 and planned production activity of 24,000 labour hours. Required: 1. Print Expert's sales manager wants to reject the special order because "financially, it's a loser." Do you agree with this conclusion if Print Expert currently has excess capacity? Show calculations to support your answer. (8 marks) (2 marks)