Question 3 - Week 11 (7 marks) GEM Limited has a single product Flicks. The company normally produces units of Flicks each year at a price of $240 per unit. The company's unit cost activity are as follow: Direct material $57.00 Direct labour 60.00 Variable manufacturing overhead 16.80 Fixed manufacturing overhead 30.00 Variable selling and administrative costs 10.20 Fixed selling and administrative costs 27.00 Total unit cost $201.00 GEM has sufficient capacity to produce 100 000 units of Flicks a year without fixed manufacturing overhead. Required: (a) GEM has an opportunity to sell 10 000 units to an overseas customer. In other special costs associated with this order would total $42 000. The that would be associated with the order would be a shipping cost of What would be the minimum acceptable unit price for GEM to cons (hint: GEM would not accept the order if it would reduce the company's (b) The company has 200 units of Flicks on hand that were produced two n to blemishes on the units, it will be impossible to sell these units at the the company wishes to sell them through regular sales channels, whe relevant cost for setting the minimum price? Explain. (2 marks) "All future costs are relevant in decision making." Do you agree? Explain