CatCompany produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 40,000 units per month is as follows:Direct Materials$43.10Direct Labour$8.70Variable Manufacturing Overhead$3.50Fixed Manufacturing Overhead$16.80Variable Selling & Administrative Expense$4.80Fixed Selling & Administrative Expense$7.50The normal selling price of the product is $85.40 per unit.An order has been received from an overseas customer for 3,000 units to be delivered this month at a special discounted price. This order would have no effect on the company's normal sales and would not change the total amount of the company's fixed costs.The variable selling and administrative expense would be $1.10 less per unit on this order than on normal sales.QUESTION 1Suppose there is ample idle capacity to produce the units required by the overseas customer, and the special discounted price on the special order is $80.50 per unit. Should Cat Company accept the special order? By how much would this special order increase (decrease) the company's operating income for the month? (Showall calculations)(6points)QUESTION 2What is an opportunity cost? Explain in your own words. (1 point)