Question 2 Minimum Pricing Decisions BABE Limited produces soft wears and has budgeted for the production of 200,000 units during the next year. The cost estimates for the quarter are as follows: GH Direct labour 1,200,000 Direct materials 400,000 Variable overheads 400,000 Packaging 200,000 Fixed overheads 800,000 3,000,000 The company has received orders for the supply of 160,000 units during the coming year at GH20 per unit. It is not likely that the remaining 40,000 will be sold at the exiting price, but a customer is prepared to purchase them at a selling price of GH14 per unit. Required Advise management whether the request should be accepted. (Show all workings) [15 Marks]