Question 4 (10 marks)Agra Medals makes medals for winners of athletic events and other contests. Its manufacturing plant has the capacity to produce 10,000 medals each month. Current production and sales are 7,500 medals per month. The company normally charges their regular customers $150 for each medal. The cost of making each medal is given below: Direct materials-$35 Direct labour- $40 Variable overhead costs- $10 Fixed overhead costs-$23 Total- $108?gra Medals has just received a special one-time-only order for 2,500 medals for the current Olympic Games being held in Japan. The customer has offered to pay $100 per medal for the special order. Accepting the special order would not affect the company’s regular business. 1.???nalyse the cost data provided above and advice Agra Medals whether they should accept the special order for 2,500 medals at $100 each. Explain the basis for your advice. Show your calculations. (7 marks)2.???ssume that Agra Medals is already producing and selling 10,000 medals to its regular customers. How would your answer to part 1 change with this new information? (3 marks)BusinessAccountingACCT 101
