42. (8 points) Hawk Inc. produces and sells 10,000 units per year but has capacity to produce and sell 12,500 units per year. Below is Hawk's per unit cost information: Sales Price Variable manufacturing costs: Direct materials Direct labor $ 600 $130 180 Variable factory overhead 70 Fixed manufacturing costs: Depreciation 50 Rent for equipment 20 20 Other Total manufacturing costs $470 28 Variable selling costs Fixed selling costs Total cost per unit 43 $541 a. Avalon Corp. has offered to purchase 1,000 units from Hawk at a price of $550 per unit. Because Avalon has reached out to Hawk, no variable selling costs will be incurred with the special order. Should Hawk Inc. accept the special order? Show calculations to support your answer. b. Suppose Hawk is operating at full capacity. If Hawk Inc. accepts Avalon's special order what is the change in Operating Income? Indicate if the change is an increase or decrease.