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how to calculate for this appendix? 1) For this question need to find how to determine for the case of the special order which is relevant or irrelevant? 2) accept or reject in both service and manufacturing industries 3) analysis focus on incremental costs and benefits 4) facility level cost is an irrelevant to the decision not change in total 5) when spare capacity exists, the relevant cost only incremental costs associated with special order 6) when no spare capacity, except opportunities costs 7) costs and benefits using qualitative information? how to calculate for special order related with this seven point

Appendix A (Note: Appendix A information is to be used only for analysing the special offer from Boardlife) Boardife has offered to bu 1,000 units of Surfskate for $200 each. The normal selling price is $300. The cost data for each SurfSkate follows: Direct material (board, trucks and wheels) Direct labour $24/hour/ Variable manufacturing overhead $120/machine hr Fixed manufacturing overhead @ $160/machine hr $ 124 $ 12 30 40 $ 16 $ 20 $ 15 ariable administrative expenses (allocated per board) Fixed administrative expenses (allocated per board) Variable selling cost (commissions $15/board) Fixed selling cost (allocated per board) Total costs $ 16 $ 273 For this special offer, no commissions will be payable as it is a direct offer to FreeAir Skate from Boardlife. There are no capacity constraints on any of the machinery that is used by FreeAir Skate to produce the boards, nor are there any labour constraints Page 7 Management Accounting

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