1 pts Question 22 Todd Gurley Ca, manufactures cups with Falcons designed on them. The following are the unit costs of making and selling an item at a volume of 10.000 units per month (which represents the company's capacity Per Unit Manufacturing Costs: $1.25 Direct Materials Direct Labor $1.80 Variable Manufacturing Overhead $0.75 Fixed Manufacturing Overhead $1.40 Selling and Administrative Costs Variable Selling Expense $0.50 Fixed Administrative Expenses $1.20 An order has been received from a customer based in Atlanta for 800 units at a price of $5.80 per unit. Fored costs, both manufacturing and selling and administrative are constant within the relevant range between 7,500 and 10,000 units per month. The variable selling and administrative costs would have to be incurred for this special order as well as all other sales. Assume direct labor is a variable cost. Manufacturing Costs $1.25 Direct Materials $1.80 Direct Labor $0.75 Variable Manufacturing Overhead $1.40 Fixed Manufacturing Overhead Selling and Administrative Costs: $0.50 Variable Selling Expense Fixed Administrative Expenses $1.20 An order has been received from a customer based in Atlanta for 800 units at a price of $5.80 per unit. Foed costs, both manufacturing and selling and administrative are constant within the relevant range between 7,500 and 10,000 units per month. The variable selling and administrative costs would have to be incurred for this special order as well as all other sales. Assume direct labor is a variable cost. Suppose Todd Gurley Co normally sells cups for $8 per unit and normal sales are 9,600 units. Should Todd Gurley Co. accept this special order? No, because operating income will decrease by $640 Yes because operating income will increase by $640 No. because operating income wil decrease by $280 Yes because operating income will increase by $280