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Question 5 Steelers AB manufactures a product called Bullet-Proof. The manufacturing costs to produce one...

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Question 5 Steelers AB manufactures a product called Bullet-Proof. The manufacturing costs to produce one unit of the product is (in SEK): Direct material: 1.30 SEK Direct labour: 1.50 SEK Variable manufacturing costs: 0.40 SEK Fixed manufacturing costs: 1.00 SEK Total manufacturing costs: 4.20 SEK The fixed administration and sales costs are 65,000 SEK per year. Sales commission per unit sold is 5%. Selling price of each unit is 5 SEK A salesman at Steelers AB is contacted by a potential new customer, Nuts-and-Bolts AB. Nuts-and-Bolts AB offered Steelers AB a one-time order of 1,000 units at a price of 4 SEK/unit Required (show all your calculations below and write in your own words) (a) Assuming Steelers AB has free capacity, should Steelers AB accept this offer? Why? (6 points) (b) Explain in full two (2) non-financial factors that Steelers AB should consider in making such a decision? (4 points)

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