27. Jones Co, received an offer to buy 3,800 units of its product for $7.50 per unit. Jones Co. normally produces 12,000 units but only plans to produce and sell 8,000 units in the coming year. The normal sales price is $12 per unit. Unit cost info is: Direct materials $2.00 Direct labor $3.10 Variable overhead $1.80 Fixed overhead $2.00 If Jones Co. accepts the order, no fixed manufacturing activities will be affected. Should Jones Co. accept the order? a. Yes, because income will increase by c. No, because income will decrease by $5,320 $2,280 b. No, because income will decrease byd. Yes, because income will increase by $5,320 $2,280 A A 4 2 1 Styles Styles Pane Dictate Sensitivity 29. Swenson Company produced 300 units in year one and sold 260 units in that year. In year two, it produced 260 units and sold 300 units. Total fixed overhead was the same in years one and two. Under variable costing, when will the cost of goods sold have to be computed using more than one step (the "longer way")? a. In years one and two b. In year one only c. In year two only d. It is not required in either year