Task 2b: CLO4 OBJECTIVE: To enable learners to identify the relevant costs and benefits from costs and revenue information available in the financial database to aid decision making in a timely manner. REQUIREMENT: Short term decision making Question NiceView Company manufactures custom-made photographic equipment. NiceView received a special order enquiry from a potential client, a company in Kota Bharu, interested in photographic equipment similar to the equipment NiceView made to earlier clients. NiceView submitted a bid of $29,500. The following cost data relate to the bid submitted to the company in Kota Bharu. Direct Material A $4,500 Direct Material B 6,000 Direct Labour 7,500 $18,000 Manufacturing overhead 5.600 (20% direct labour costs) $23,600 NiceView adds a 25% profit margin to all jobs, computed on the basis of the total cost. In this client's case, the profit margin amounted to $5,900 (23,600 x 25%), producing a bid price of $29,500. Assume that 60% of manufacturing overhead is fixed, and Niceview is currently operating below its normal capacity. Required: The client offered to buy the equipment for $22,750. Considering that this one time offer could lead to future business with the client, should NiceView accept the client's offer? Why? (6 marks)