Question 5: (5 marks) (B1, C1, C2) [Accept an order at a Special Price] Aleen Company is presently operating at 40000 of capacity and manufacturing 24000 units of a patented electronic component. A special offer has been received from: 1. Company X to purchase 4000 units of the components at a price of $24 per unit. 2. Company Y has offered to purchase 18000 units of the components at a price of $28 per unit The cost structure of the component is as follows: Raw materials $ 6.00 per unit Direct labor $ 6.00 per unit Variable overhead unit Fixed overhead $150,000 per year 1 The normal selling price is $32 per component. Required: Should the offer from Company X or Y firms be accepted? Why or why not? (Show your analysis in detail) $ 8.00 per Question 6: (10 marks) (B1, C1, C2) [Budgeting Process Manama Company is preparing its budget for 2019 and has completed the sales budget for the first six months of the year. The projected volume is as follows: January February March April May June 50,000 bottles 60,000 bottles 100,000 bottles 80,000 bottles 40.000 bottles 20,000 bottles The desired ending inventory for each month must be equal to 30 percent of the next month's sales. The December 31, 2018, inventory was 15,000 bottles. Instructions: a. Prepare the production budget for the first three months of 2019. (4 marks) b. Assume each finished bottle requires 25 ounces of water and that the ending inventory each month must be equal to 120 percent of the next month's production needs. The December 31, 2018, inventory of water was 265,000 ounces. Prepare the direct materials purchases budget for the first three months of 2019. (6 marks)