Cora Corporation produces refrigerator unlts. The company's normal production and sales volume of Standard units is 3,750 units per month, and units sell for $900 each. The costs of manufacturing and marketing a Standard model are as follows: The company is considering diversifying the product line to Include two additional models, Economy and Deluxe, which would sell for $760 and $900 per unit, respectlvely. The costs of manufacturing these new models are as follows: Total fixed product and perlod costs are expected to remain unchanged. Cora expects to sell 1,500 units of the Economy model and 1,250 unlts of Deluxe model per month. The company cannot expand Its production capacity beyond its current level of 3,750 units. Required: 1. If Standard Model is the only product, what would the Operating Income be? 2-a. Suppose that a supplier is willing to supply 1,000 unlts of the Standard model at a price of $270 per unlt. Also assume that the company can sell all that It can produce of the remaining two models. Should the offer of the supplier be accepted? Yes No 2-b. Which of the model should produced? Standard Model Economy Model Delux Model