Hello,

I need the solution for this question 4 both a and b. The information required to solve this problem is given in the second image.

Please help. Thank you!

4. At present, Brackley Co.'s marketing and sales activities are only in Ontario and western Quebec. A grocery chain in Manitoba has asked them to supply 50,000 pies per month at a price of $2 per pie. The marketing manager thinks that the company should refuse the contract because $2 is so far below its normal selling price of $3. The production manager thinks that the company should accept the order as there is spare capacity in the plant, and the variable selling costs (delivery and commission) would not be incurred in respect of this order. Required (a) Should Brackley Co. accept the order or not? (b) If Brackley Co. had no spare capacity in the plant, would the answer be the same? 418 Scenario #2 The following information pertains to Problems #5 and #6. Fuel Inc. sells gas, diesel, and propane. The income statement for a recent month was as follows: Fuel Inc. Income Statement Recent Month Gas Diesel Propane Total Sales revenue $ 650,000 $ 275,000 $ 75,000 $1,000,000 Direct materials 325,000 125,000 50,000 500,000 $ 325,000 Gross margin $ 150,000 $ 25,000 $ 500,000 Overhead expenses 400,000 260,000 110,000 30,000 (all fixed cost) 40,000 $100,000 S (5,000) $ 65,000 Operating income 4. At present, Brackley Co.'s marketing and sales activities are only in Ontario and western Quebec. A grocery chain in Manitoba has asked them to supply 50,000 pies per month at a price of $2 per pie. The marketing manager thinks that the company should refuse the contract because $2 is so far below its normal selling price of $3. The production manager thinks that the company should accept the order as there is spare capacity in the plant, and the variable selling costs (delivery and commission) would not be incurred in respect of this order. Required (a) Should Brackley Co. accept the order or not? (b) If Brackley Co. had no spare capacity in the plant, would the answer be the same? 418 Scenario #2 The following information pertains to Problems #5 and #6. Fuel Inc. sells gas, diesel, and propane. The income statement for a recent month was as follows: Fuel Inc. Income Statement Recent Month Gas Diesel Propane Total Sales revenue $ 650,000 $ 275,000 $ 75,000 $1,000,000 Direct materials 325,000 125,000 50,000 500,000 $ 325,000 Gross margin $ 150,000 $ 25,000 $ 500,000 Overhead expenses 400,000 260,000 110,000 30,000 (all fixed cost) 40,000 $100,000 S (5,000) $ 65,000 Operating income