chemical company spent $532,000 to produce 150,000 gallons of a chemical that can be sold for $4.80 per gallon. This chemical can be further processed into a weed Problem 8(10 points) It will cost $270,000 to process the killer that can be sold for $8.20 chemical into the weed killer ince hewo r s8 20 per gallon. fthe company decides to process further, how will it affect the operating income? Problem 9 (Bonus points 10): SoftSeats produces chairs and couches for reception areas and executive suites. Historically, SoftSeats has manufactured their own cushions for the chair they sell. However, a cushion manufacturer has recently approached SoftSeats with an offer to produce their cushions for them for $45 per cushion. SoftSeats incurs the following costs in the production of the seat cushions: $10 for direct materials, $20 for direct labor, $10 for variable overhead, and $10 for fixed verhead. Management is wondering whether they should accept the offer. at would be the increase or decrease in per-unit costs if the cushions were hased from the outside supplier