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Peters Company makes a product that regularly sells for $13.00 per unt. [i] (Cick the ioon to viow additional infermation.) 7. If Peters Company has excess capacity, should it accopt the offer from Telstar? Show your calculations. 8. Does your answer change if Peters Company is operating at capacity? Why or why not? 7. It Pelers Compary has excess copacity, should it accept the offor trom Telstar? Show your ealculatona. UUso a Petors should the ofler because operating income wil 8. Does your answer change if Peters Company is operating at capacty? Why or why not? (Eriter an expected decr Peters should the offer if operating at capacty because operating incore wil The product has variable manufacturing costs of $6.50 per unit and fixed manufacturing costs of $2.30 per unit (based on $368,000 total fixed costs at current production of 160,000 units). Therefore, total production cost is $8.80 per unit. Peters Company receives an offer from Telstar Company to purchase 4,500 units for $7.50 each. Selling and administrative costs and future sales will not be affected by the sale, and Peters does not expect any additional fixed costs. apacity because operating income will decrease by $24,750. decrease by $4,500. increase by $24,750 increase by $4,500