Adams furniture receives a special order for 10 sofas for a special price of $4800. The direct materials and direct labor cost for each sofa are $190. In addition, supervision and other fixed overhead costs average $240 per sofa

a1. What is the impact on operating income from accepting the special order?

a2. Based solely on a short term financial analysis, should Adam accept the special offer?

b1.Adam is currently operating at full capacity, what would the opportunity cost per unit for lost sales to regular customers if the special sales order is accepted and the selling price per unit on regular sales equals $600?

b2. Based solely on a short-term financial analysis, should Adams accept order if it is currently operating at full capacity?