please answer this question in detail, and please clarify how S&A fixed and variable costs are used. thank you.

Question one :( 13 marks) Liverpool Co produces and sells TV, the following are information related operation cycle for TV Selling price $1400. Production capacity 20000 units. Item Cost permits Direct material Direct labour Variable overhead 120 Fixed overhead 1.50 Variable SEA (including 25 of sales commission for each unit) Fixed SEA 100 Required: make the appropriate decision and justify your decision for the following ce consider cachare separately 1. If the projected production is 17000 units and the company got an offer the Arsenal.co that willing to buy 2000 units (TV) at a price of S90 per TV. Do you agree on the offer? 2. If the projected production is 20000 units and the company at an offer from Aescal.co that willing to buy 4000 (TV) aprice of 5900 per TV. However, producing additional units above Liverpool capacity imples additional $90 fixed overhead petit. Do you are on the offer? 3. Liverpool sed part X in manufacturing TV, it can be produced immalle hought from Chelsea Co by 5150 that result in eving half of food overhead The production cost of part X is as follow Direct material 560 Director Vaihe overhead 535 Fixed overhead 540 Do you make or buy and why? + Ir the pool produces also air-condition (AC) and sells in a price of 5700 the cost of (AC) per unit is listed below: ses Item Direct mata Direct labour Variable overhead Fixed overhead Variable S&A including of sales commission for cach unit) Fixed S&A Cost per units 150 150 100 200 100 $ 3887 Each TV needs I machine bour, while cach AC need 15 minutes 25 MH). After satisfying the market demand, in which product do you prefer more to manufacture in the light of available machine hours