EliteVase Company manufactures vases at a total manufacturing cost of $23/ vase, which consists of variable costs of $17/ vase and fixed overhead costs of $6/ vase. HomeDecor Inc. has offered EliteVase \$25/vase for 1,500 vases. HomeDecor has also requested that their company logo be engraved on each vase. EliteVase estimated that the engraving will cost $1.50 /vase. Assuming excess capacity and no effect on regular sales, what is the effect of accepting the special order on EliteVase's operating income? a) Operating income will increase by $3,250 b) Operating income will increase by $9,750 c) Operating income will increase by $750 d) Operating income will increase by $12,000 Davis Inc. produces three product lines in its manufacturing facility in St. John's, NL: Product Line (1), Product Line (2), Product Line (3). Davis is considering dropping Product Line (2) because it has been unprofitable for the past two years. Which of the following items is (are) irrelevant to Davis' decision to drop/keep Product Line (2)? a) Total cost of rent on the manufacturing facility. b) Customer demand for Product Line (2). c) Savings in direct materials cost associated with Product Line (2). d) All of the above items are considered relevant in the decision