11 6 1.25 9. Watco Industries has been approached by a major hardware distributor to provide a repack- aged version of one of Watco's products. The product normally sells for $15 and has the fol- lowing full costs: Direct materials $ 4.00 Direct labor 3.50 Variable overhead Fixed overhead 250 Total.. $11.25 The hardware distributor has offered a price of $10 for 10,000 units of this product. Watco currently has excess capacity: In fact, Watoo could rehire some workers that were recently laid on, if Watco accepts this order, what would be the change in profits (assuming no existing sales of the product would be affected)? a. $12,500 decrease b. $50,000 decrease c. $37,500 increase d. $12,500 increase e no change