case 3 Office Stationery Ltd. manufactures and sells professional diaries. The normal selling price of the diaries are $12.00 per unit. A new offshore customer has placed an order to purchase 15,000 diaries at an offer price of $7.00 per unit which is quite low compared to its normal selling price. The new customer is geographically separated from the company's other customers, and existing sales and prices are not likely to be affected by the new sales. Office Stationery Ltd has a set up capacity to produce 82,000 units. However, it only produces and sells 65,000 units due to lack of sufficient demand in local market. The unit production cost information for the diaries is as follows: Direct materials Direct labour Variable overhead Fixed overhead Total $3.10 2.25 1.15 1.80 The existing manufacturing activities will remain unchanged and fixed overhead costs will remain unchanged if the special order is accepted