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CoursHeroTranscribedText: Part b: Dnlmette Corporation produces drum kits for kids that sell for $29 each. At capacity, the company can produce 80,000 kits a year. The costs of producing and selling 60,000 kits are as follows: Cost per Kit ($) Total Costs (S) Direct materials 10 600,000 Direct manufacturing Law 4 240,000 Variable manufacturing overhead 1 60,000 Fixed manufacturing overhead 5 300,000 Variable selling expenses 3 180,000 Fixed selling expenses 4 240,000 Total costs 27 1,620,000 REQUIRED: a) Suppose Drumette is currently producing and selling 60,000 kits. At this level of production and sales, its fixed costs are the same as given in the table above. m Corporation wants to place a one-time special order for 20,000 kits at $20 each. Drumette will incur no variable selling costs for this special order. Should Drumette accept this one-time special order? Show your calculations. (2 Marks). b) Now suppose Drumette is currently producing and selling 70,000 bats. If Drumette accepts Rip'en's offer it will have to sell 10,000 fewer kits to its regular customers. 0 On financial considerations alone, should Drumette accept this one-time special order? Show your calculations. (2 Marks) 0 What other factors should Drumette consider in deciding whether to accept this one-time special order? Fully explain at least 2 other factors. (2 Marks)

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