8 (24 points) The Atlanta Company produces a single product called a Zoom. Atlanta has the capacity to produce 60,000 Zooms each year. If Atlanta produces at capacity, the per unit costs to produce and sell one Zoom are as follows: Direct materials $18 Direct labor $12 Variable manufacturing overhead $10. Fixed manufacturing overhead $12 Variable selling expense $8 Fixed selling expense $5 The regular selling price for one Zoom is $80. A special order has been received by Atlanta from Hill Company to purchase 8,000 Zooms next year. If this special order is accepted, the variable selling expense will be reduced by 70%. However, Atlanta will have to purchase a specialized machine to engrave the Hill name on each Zoom in the special order. This machine will cost $12,000 and it will have no use after the special order is filled. The total fixed manufacturing overhead and selling expenses would be unaffected by this special order. Question One-Assume Atlanta anticipates selling only 50,000 units of Zoom to regular customers next year. If Hill Company offers to buy the special-order units at $65 per unit, compute the amount of change in Atlanta's operating income by accepting the special order. Indicate Increase by "I" and Decrease by "D". Example of Answer: 40001 or 4000D (No space, comma, decimal point, or $ sign) The amount of change in Atlanta's operating income by accepting the special order = P/ Question Two- Assume Atlanta anticipates selling only 50,000 units of Zoom to regular customers next year. At what selling price for the 8,000 special order units would Atlanta be economically indifferent between accepting or rejecting the special order from Hill? (minimum acceptable price) Example of Answer: 5.65 or 5.60 or 5.00 (Two decimal points. No space, comma, or $ sign) Minimum acceptable price Question Three- Assume Atlanta can sell 55,000 units of Zoom to regular customers next year. If Hill Company offers to buy the special-order units at $65 per unit, compute the amount of change on Atlanta's operating income if the special order is accepted. Indicate Increase by "I" and Decrease by "D". Example of Answer: 40001 or 4000D No space, comma, decimal point, or $ sign. The amount of change on Atlanta's operating income if the special order is accepted