A company is considering whether to accept additional business. They are operating at 85% of full capacity. At this level, per unit and annual costs are as follows Unit Cost Sales Costs: 5.00 S425,000 S1.25 1.75 50 50 4.00 1.00 Direct materials Direct labor Factory overhead Other expenses 106,250 148,750 42.500 Total costs S340,000 Operating Income A current buyer has offered to purchase an additional 10,000 units for $3.50 per unit. The following information is relevant to assist management in making the decision concerning whether to sell these additional units at less than the current cost of $4.00 per unit Manufacturing the additional units requires the normal direct materials and direct labor costs Total incremental overhead costs are $2,500. Total incremental other expenses are $2,000. I. Determine the relevant costs per unit to make the 10,000 additional units: 2. Determine the total operating income related to the 10,000 additional units: Sales Direet materials Direct labor Factery overhead Other e Total costs Operating Income Should the company accept the offer to make 10,000 additional units at $3.50 each and why