Adams Company makes a product that regularly sells for $10.00 per unit. (Click the icon to view additional information.) 7. If Adams Company hs excess capacity, should it accept the offer from Nelson? Show your calculations. 8. Does your answer change if Adams Company is operating at capacity? Why or why not? The product has variable manufacturing costs of $8.00 per unit and fixed manufacturing costs of $1.90 per unit (based on $323,000 total fixed costs at current production of 170,000 units). Therefore, total production cost is $9.90 per unit. Adams Company receives an offer from Nelson Company to purchase 4,500 units for $7.00 each. Selling and administrative costs and future sales will not be affected by the sale, and Adams does not expect any additional fixed costs. 7. If Adams Compary has excess capacity, should it acceps the offer from Nelegn? Show your calculations. (Use a minus sign or parentheses to thow a decrease in coernting income) Adams should the ofler because operating incorne will 8. Does your answer ehange is Adams Company is operating at capecty? Why or why not? (Enter an expected decresse in revenue with a minus sign or parentheses) Adarns should the ofler if cperating at capacty because operating income wal