Question 2 (11 points) DataSave is a manufacturer of USB Flash Drives. The regular market price...

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Question 2 (11 points) DataSave is a manufacturer of USB Flash Drives. The regular market price of their 16GB model is $26 each. DataSave has been approached by a major sports franchise with a special order for 25,000 units of 16GB flash drives in their team colours at a price of $18 each. DataSave's total cost of production for this model is $22 per USB, as follows: Variable costs: Direct materials $11.50 3.75 Variable overhead 2.00 Direct labour Fixed overhead Total cost 4.75 $22.00 Required: 1. Assuming DataSave has excess capacity and fixed costs would not be affected by the special order, prepare an incremental analysis to determine whether DataSave should accept the special order. (Please state your decision after showing your calculation). 2. Assuming DataSave only has limited capacity to produce 15,000 units of 16GB flash drives and the fixed costs would not be affected by the special order, what is the minimum price of the special order that is acceptable to DataSave? Question 2 (11 points) DataSave is a manufacturer of USB Flash Drives. The regular market price of their 16GB model is $26 each. DataSave has been approached by a major sports franchise with a special order for 25,000 units of 16GB flash drives in their team colours at a price of $18 each. DataSave's total cost of production for this model is $22 per USB, as follows: Variable costs: Direct materials $11.50 3.75 Variable overhead 2.00 Direct labour Fixed overhead Total cost 4.75 $22.00 Required: 1. Assuming DataSave has excess capacity and fixed costs would not be affected by the special order, prepare an incremental analysis to determine whether DataSave should accept the special order. (Please state your decision after showing your calculation). 2. Assuming DataSave only has limited capacity to produce 15,000 units of 16GB flash drives and the fixed costs would not be affected by the special order, what is the minimum price of the special order that is acceptable to DataSave?