Harrison Ford Company has been approached by a new customer with an offer to purchase 10,000 units of its model 15 at a price of $3,80 each. The new customer is geographically separated from the company's other customers, and existing sales would not be affected. Harrison normally produces 75,000 units of 15 per year but only plans to produce and set 60,000 in the coming year. The normal sales price is $12 per unit. Unit cost information for the normal level of activity is as follows: Direct materials Direct labor 2.50 $1.75 1.50 Variable overhead Pred overhead 3.25 Total $9.00 Pored overhead will not be affected by whether or not the special order is accepted. Required: 1. Should the company accept or reject the special order? Reject 2. By how much will operating income increase or decrease if the order is accepted? by Decrease 3 X Foto TOWN 2. Special order decisions focus on accepting or rejecting a specially priced order. Relevant costs are future costs and differ across alternatives. 2. Set up four columns. First column tists all costs. Second and third columns are for alternatives, accept or reject, and list all amounts. Fourth column is the differential benefit to accept. Multiply the amount in fourth column by number of special order units to determine increase/decrease in operating income