Harcourt Manufacturing (HM) has the capacity to produce 14,000 fax machines per year. HM currently produces and sells 9,000 units per year. HM currently leases its excess capacity for a rental fee of $101,000. The fax machines normally sell for $300 each. Modem Products has offered to buy 4,000 fax machines from HM for $160 each. Unit-level costs associated with manufacturing the fax machines are $55 each for direct labor and $80 each for direct materials. Product-level and facility-level costs are $70,000 and $85,000, respectively. Based on this information (ignore qualitative characteristics) Multiple Choice HM should reject the offer because accepting it will reduce profitability by $1,000. HM should accept the offer because accepting it will contribute $14,000 to profit. HM should reject the offer because accepting it will reduce profitability by $14,000 HM should accept the offer because accepting it will contribute $101,000 to profit