Exercise 5b: Consider accepting a special order to produce alue: 20 points) The ROAR company manufactures a single product that sells for $ 17.00 each unit. The cost of each unit produced at a monthly production level of 10,000 units is: Direct cost materiasl Direct labor Variable manufacturing overhead cos Fixed indirect manufacturing Fixed administrative expenses $2.80 $3.30 $.75 $4.60 $2.25 The total monthly production capacity is 12,000 units. A special order for 2,000 units was received at a purchase price of $ 14.00 per unit. Regular sales will not be affected by this order. Required: 1. How much will the monthly profit increase or decrease if ROAR accepts the special order? Please note that accepting the order will not affect the fixed costs. (15 points) 2. Suppose the company has 600 units of an earlier model of this item that were unsold last year. To dispose of the units, the company has to sell them at a reduced price through the normal sales channels. Identify the unit cost that is relevant for determining the minimum price at which these units can be available. Explain why you consider that to be the relevant cost. (5 points)