Al AaBbCcDd AaBbCcDd AaBbC( AaBbCCL Ad D AaBD 1 Normal 1 No Spac... Heading 1 Heading 2 Title Subtit Paragraph Styles . 1 . 1 . 1 . 2 . 1 . 3 . 1 . 4 . 1 . 5 . 1 . 6 . 1 1 7 . 1 . 8 . 1 . 9 . 1 . 10 . 1 . 11. 1 . 12 1 13 1 14 1 15 . ) . 16. Question 1 (20 marks) - Incremental Analysis Mila Company manufactures coffee cups. For the first eight months of 2020, the company reported the following operating results while operating at 65% of plant capacity: Sales (25,000 units) $100,000 Cost of goods sold 65,000 Gross profit 35,000 Operating expenses 25,000 Net income $10,000 An analysis of costs and expenses reveals that variable cost of goods sold is $1.80 per unit and variable operating expenses are $0.20 per unit. In September, Mila Company receives a special order for 10,000 coffee cups at $3 each from a major coffee shop. Acceptance of the order would result in 300 of shipping costs but no increase in fixed expenses. Instructions (a) Prepare an incremental analysis for the special order. (10 marks) ( b ) Should Mila Company accept the special order? Justify your answer. (3 marks) (c) Should Mila Company accept the special order if Mila Company receives a special order for 10,000 coffee cups at $2 per unit? Justify your answer. (7 marks) O ASUS VivoBook