Adams Company makes a product that regularty sells for $13.50 per unit. 1. (Click the icon to view additional information.) 7. If Adams Company has excess capacity, should it accept the offer from Powell? Show your calculations. B. Does your answer change if Adams Company is operating at capacily? Why or why not? 7. If Adams Company has excess capacity, should it accept the ofler from Poweli? Show your calculations. (Use a minus sign or parentheses to show a docrease in operating income.) npany makes a product that regularly sells for $13.50 per unit. he icon to view additional information.) Company has excess capacity, should it accept the offer from Powell? Show your calculations. ur answer change if Adams Company is operating at capacity? Why or why not? 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