Wazup Ltd. Produces and sells surf boards. The price of the surf boards is $260. The company's current output is 10000 units per month, which represents 80% of its productive capacity. The total costs per month are $1400000 of which $250000 are fixed costs. The company has received an order from a new customer who is offering to buy 1800 surfboard as a special one time order at $310 each.

Required:

a. Is there a resource constraint? Show all working.

b Calculate the contribution on the new order. Should the company accept the new
order? Show all working.

i) Suppose the new order is for 3200 instead of 1800 at a price of $350 each. Use
this information to answer c,d, and e.

c. Is there a resource constraint

d. Should the company accept or reject the order

e. Other than the profit it would make on this order what other matters should the
business consider in deciding whether to accept this special order?