$13\mathrm{.}39$ Special order capacity constraint; relevant information; qualitative factors

Rightway Printers, a book printing shop, is operating at $95$ per cent capacity. The entity has been offered a special order for

book printing at $$8\mathrm{.}50$ per book; the order requires $10$ per cent of capacity. No other use for the remaining $5$ per cent idle

capacity can be found. The average cost per book is $$8$ and the contribution margin per book for regular sales is $$1\mathrm{.}50.$

Required

$($a$)$ Which type of non$-$routine operating decision is involved here? What are the managers' decision options?

$($b$)$ What information is relevant for this decision? Does the problem give you all of the information the managers need to

make a decision? What other information is needed?

$($c$)$ Using the general decision rule, what premium are the managers willing to pay $($per book$)$ to relax the constrained

capacity, assuming no qualitative factors are relevant?

$($d$)$ Explain how capacity affects the quantitative analysis for this decision.

$($e$)$ What qualitative factors could affect this decision?