2) Surly Company makes small boats. The company produces and sells 5,500 boats per year at a selling price of $160 per boat. Surly Company has excess capacity and is trying to get special orders. A new retailer wants to purchase 1,000 boats for $125 per boat. Surly Company is going to decline the special order because it costs $130 to make a single boat as seen below: Direct materials $50 per unit $55 per unit $10 per unit $15 per unit $130 per unit Direct manufacturing labor Variable manufacturing overhead Fixed manufacturing overhead Total Required: A) Should Surly Company accept/reject the special order from the new retailer? Why? B) How much will Surly's net income increase with the special offer? (special order) k 1a5