Assume that a Belco's soup plant is running at 85% of its monthly capacity. Belco's has just received a special order to produce 115,000 cases of chicken noodle soup for a national supermarket. The supermarket will sell the soup under its own private brand label. The soup will be the same in all respects, except for the label, which will cost Belco's an extra $4,000 in total to design. The supermarket has offered to pay only $31.00 per case, which is well under Belco's normal sales price. Costs at the current production level (765,000 cases) are as follows: (Click the icon to view the table.) 1. Is there enough excess capacity to fill this order? 2. Will Belco's operating income increase or decrease if it accepts this special order? By how much? 1. Is there enough excess capacity to fill this order? If the plant is producing 765,000 cases a month, yet only operating at 85% of capacity, it must have a capacity level of cases per month. This means the plant has excess capacity of fill this special order. cases per month. there is enough capacity to Data table Total Cost Cost per Case (765,000 cases) Direct Materials $ 15,300,000 $ 20.00 Direct Labor 3,825,000 5.00 Variable MOH 3,060,000 4.00 6,885,000 9.00 Fixed MOH $ 29,070,000 $ 38.00 Total