Question $3(18$ marks$)$ EE Electronics $($EEE$)$ manufactures calculators. During January, EEE had the following operating results for sales of $35,000$ units while operating at $70$ percent of its production capacity:

Sales $$1,400,000$

Cost of goods sold $350,000$

Gross profit $$1,050,000$ Selling expense $87,500$

General & Administrative expense $525,000$

Net Operating Income $$437,500$

EEE$$s selling expenses are all variable, but the cost of goods sold and, general and administrative expenses are $80$ percent variable and $20$ percent fixed. In January, EEE received an order from a distributor who orders $10,000$ calculators for $$25$ each. The distributor orders the calculators for a University in Asia. To take this order, EEE requires to pay a lump sum referral fee of $$50,000$ to the distributor.

Required:

$($a$)$ Prepare a contribution format income statement for EEE. $(6$ marks$)$

$($b$)$ Determine whether EEE should accept this special order. Show your calculations. $(6$ marks$)$

$($c$)$ If EEE was operating at full capacity, determine whether your answer in requirement $($b$)$ would change. And if so$,$ determine what price would EEE require for the special order. $(6$ marks$)$