Adams Company makes a product that regularly sells for $13.50 per unit. (Click the icon to view additional information.) 7. If Adams Company has excess capacity, should it accept the offer from Powell? Show your calculations. 8. Does your answer change if Adams Company is operating at capacity? Why or why not? 7. If Adams Company has excess capacity, should it accept the offer from Powell? Show your calculations. (Use a minus sign or parentheses operating income.) Adams should the offer because operating income will 8. Does your answer change if Adams Company is operating at capacity? Why or why not? (Enter an expected decrease in revenue with a m More info The product has variable manufacturing costs of $9.50 per unit and fixed manufacturing costs of $1.80 per unit (based on $270,000 total fixed costs at current production of 150,000 units). Therefore, total production cost is $11.30 per unit. Adams Company receives an offer from Powell Company to purchase 5,400 units for $7.50 each. Selling and administrative costs and future sales will not be affected by the sale, and Adams does not expect any additional fixed costs