4 pts Question 22 CH 7 AP. Triboro Designers produces a backpack that normally sells for $120. The company produces 800 units annually but has the capacity to produce 1,000 units. An order from a customer has been received for 200 backpacks at $85 each that would not disrupt current operations. Current costs for the backpack as follows: Direct materials $23.00 Direct labor 45.00 Variable overhead 7.00 Fixed overhead 12.00 Total $87.00 In addition, the customer would like to add a monogram to each bag which would require an additional $4 per bag in additional labor costs. Triboro would also have to purchase a piece of equipment to create the monogram which would cost $800. This equipment would not have any other uses. Which statement is true with regard to this situation? Incremental costs will exceed incremental revenues by $2,000. Incremental revenues will exceed incremental costs by $400. O Incremental revenues will exceed incremental costs by $1,200. Incremental costs will exceed incremental revenues by $1,200