Question: Please answer quick Question 3 Jaxx Ltd. produces high quality mobile phone screen protection that it sells for $4 each. At current capacity, Jaxx Ltd.



Please answer quick
Question 3 Jaxx Ltd. produces high quality mobile phone screen protection that it sells for $4 each. At current capacity, Jaxx Ltd. can produce 50,000 screen protections a year, although Jaxx Ltd. is currently producing and selling 40,000 screen protections. The budget costs of producing and selling 50,000 screen protections are as follows: Sales price for the mobile phone screen should be$40 each. The budgeted costs of producing and selling 50,000 screen protections should be as follows: Direct Materials $15.00 $750,000 Direct manufacturing labour $5.00 $250,000 Variable manufacturing overhead $3.00 $150,000 Fixed manufacturing overhead $6.00 $300,000 Variable selling expenses $3.00 $150,000 Fixed selling expenses $2.00 $100,000 Total Costs $34.00 $1,700,000 (a) Congo Ltd. wants to place a one-time special order for 10,000 screen protections at $3 each. Jaxx Ltd. will incur no variable selling costs for this special order. Should Jaxx Ltd. accept this one-time special order? Show your calculations. (5 marks) (b) If Jaxx Ltd. is currently producing and selling 45,000 screen protections and Congo insists to order 10,000 units, on financial consideration alone should Jaxx Ltd. accept this one-time special order on 10,000 units? (10 marks)
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