-Robert Company makes bottles. The followings are the extracted information:

Direct materials used	48,000		Maximum capacity	21,000
Direct labor	18,000		Units produced and sold	6,000
Variable manufacturing overhead	12,000		Finished Goods Inventory	$0
Fixed manufacturing overhead	42,000		WIP Inventory	$0
Variable selling and admin expenses	12,000		(Both Beginning and Ending)	$0
Fixed selling and admin expenses	8,000
Unit selling price	$22

The Company gets a special order of 16,000 units. If the Company accepts the order, it has to incur an additional package cost $0.2 per unit.

(Show Workings)

a) Calculate the profit /(loss) impact if the Company accepts the special order, (assume no other fixed costs are affected.) if the special order unit price is $18. (7 marks)

b) Advise if the Company should accept the special order quantitatively. (5 marks)