5.2 REQUIRED Study the information provided below and answer the following questions: 5.2.1 D oes Maverick Limited have spare capacity to accept the special order? Motivate your answer (2 marks) 5.2.2 hould the company accept the special order? Show allthe relevant calculations . marks) 5.2.3 Explain TWO (2) possible disadvantages to Maverick Limited of accepting the special order. (4 marks) INFORMATION Maverick Limited expects to manufacture 36 000 units of Product K, using 90% of its normal capacity. The costs to manufacture 36 000 units of Product K are as follows: R 360 000 75 600 259. 200 600 201 400 68 640 000 Fixed manufacturing overheads Variable manufacturing overheads Direct materials cost Direct labour cost Variable marketing costs Fixed marketing and administrative costs The selling price is R40 per unit. However, a customer has offered to pay R24 per unit for an additional 3 800 units END OF PAPER

5.2 REQUIRED Study the information provided below and answer the following questions: 5.2.1 Does Maverick Limited have spare capacity to accept the special orden? Motivate your answer. 5.2.2 Should the company accept the special orden? Show all the relevant calculations 5.2.3 Explain TWO (2) possible disadvantages to Maverick Limited of accepting the special order. (2 marks) (6 marks) INFORMATION (4 marks) Maverick Limited expects to manufacture 36000 units of Product \\( K \\), using \90 of its normal capacity. The costs to manufacture 36000 units of Product \\( K \\) are as follows: The selling price is R40 per unit. However, a customer has offered to pay R24 per unit for an additional 3800 units