Part C (10 marks; 18 Minutes) LED Screens Ltd makes and sells portable television sets. Each television sells for R200. The following cost data per television is based on a full capacity of 15 000 televisions produced each period: Direct materials are R75 Direct labour are R55 Factory overheads R48 (75% variable; 25% fixed) Screens-R-Us Ltd is currently selling 9 200 televisions through regular distributors each period. A special order has been received for the sale of 3 500 televisions at a selling price of R150 each to an overseas customer. Screens-R-Us Ltd has adequate capacity. The only selling costs that would be incurred on this order would be R10 per television for shipping. Required - 1. Should the special order be accepted and why? Provide detailed calculations in support of your answer. 2. List two factors that should be considered before accepting a special order.
