1. Gabriela & Co. manufactures fancy bath towels in Boone, NC. The plant has a oduction capacity of 44,000 towels each month. Current monthly production is 30,000 towels. Per unit costs are as follows: Profit Income VC FC DM $6.50 DL 0.50 $1.50 Mftg Costs 1.50 3.50** Total $8.50 $5.00 + 2 (MKTG) Total fixed direct manufacturing labor is $45,000. Total fixed overhead is $105,000. Marketing costs per unit are $7.00 ($5 of which is variable). *$45,000/30,000 towels $1.50 per towel **$105,000/30,000 towels = $3.50 Mftg costs per towel A hotel in Puerto Rico has offered to buy 5,000 towels from Gabriela & Co. at $11.50 per Towel. No marketing costs will be incurred for this one-time-only special order. a. Should Gabriela & Co. accept this order? Support your answer with computations (Worth 2 pts.) Accept : 5000X11.50- 57500 b. What is the increase or decrease in net income if they accept the offer? (Worth 1 pt.) What is the CM per unit if they accept the offer? Support your answer with computations. (Worth 1 pt.)