REQUIRED

Study the information provided below and answer the following questions:

$5\mathrm{.}1\mathrm{.}1$ Calculate the net profitlloss that Sinclair Limited would make without the special order. Use the format of the marginal costing statement to present

$(5$ marks

your answer.

$5\mathrm{.}1\mathrm{.}2$ Does Sinclair Limited have sufficient capacity to accept the special order? Motivate your answer.

$(2$ marks$)$

$5\mathrm{.}1\mathrm{.}3$ Determine whether the company should accept the special order. Show all the relevant calculations.

INFORMATION

$(5$ marks$)$

Sinclair Limited expects to manufacture and sell $425000$ units during $2024$ using $85\%$ of its normal capacity. The variable manufacturing costs amount to R$24$ per unit. The selling price is R $60$ per unit. Variable marketing costs are R$3$ per unit. The fixed manufacturing overheads are expected to amount to R$3120000.$ Fixed marketing and administrative expenses are budgeted at R$2340000.$

A customer has offered to pay R $36$ per unit for an additional $70000$ units.