QUESTION $4(30$ marks$)$ Harmony Home Decor, a manufacturer of home appliances, has branches in Cape Town and Durban. The Cape Town branch has received a special$-$order request from a local community for $450$ units of the Deluxe Oven model at a price of R$4895$ per unit. To produce each Deluxe Oven, Harmony Home Decor will require the following resources: $$ Supervision: $68$ hours $$ Direct labour: $30$ hours $$ Steel panels: $18$ panels $$ Electronic controls: $25$ controls The following additional information is provided: $$ Enough steel panels required for the special order are available at a book value of R$85$ per panel and have no alternative use. It can be sold to a local scrap dealer for R$70\mathrm{.}50$ per unit. $$ Enough electronic controls are required for the special order, which are exclusively available at the Durban branch. They have a book value of R$50$ per unit and a replacement value of R$65$ per unit and are used in normal day$-$to$-$day production. Transporting the Electronic controls required for the special order to Cape Town will incur a total cost of R$8700.$ Direct labour will be reallocated from another project, with labourers earning R$25$ per hour. Additional labour for the other project will be hired at R$40$ per hour. $$ Supervision costs are calculated as $30\%$ of labour costs. Enough existing permanent staff are available to supervise the special order within their normal duties. $$ Fixed overheads are allocated at R$2$ per supervision hour. $$ Specialised software costing R$30000$ is required for this order and will be sold for R$18000$ after completion. REQUIRED: $4\mathrm{.}1.$ Briefly explain the circumstances when the original purchase price of materials is irrelevant for decision$-$making. $(3$ marks$)4\mathrm{.}2.$ Briefly explain the circumstances when the original purchase price of materials is relevant for decision$-$making. $(4$ marks$)4\mathrm{.}3.$ Advise the management of Harmony Home D$$cor whether the company should accept the special order or not. Support your answer with detailed calculations. $(18$ marks$)4\mathrm{.}4.$ List any five $(5)$ qualitive factors which the management of Harmony Home D$$cor should consider when deciding if the special order should be accepted or not. $(5$ marks$)$ SAICA Competency Framework Reference: