(HiM) has the capacity to produce 12,400 fax machines par 10. Harcourt Manufacturing (HM) has the capacity to producear. HM currently leases its year. HM currently produces and sells 8,200 . The fax machines nomally sell for $220 excess capacity for a rentai fee of $55,500. The fax muy 3,200 fax machines from HM for $120 each. Modem Products has ofiered to buy 3,200 fax macturing the fax machines are $39 each. Unit-level costs associated whith direct materials. Product-level and facilityeach for direct labor and $64 each for direct maty. Based on this information level costs are $62,000 and $77,000, accepting it will reduce profitability by $12,400. A. HM should reject the offer because accepting it will reduce profitability by $1,100. B. HM should reject the offer because accepting it ill will contribute $12,400 to profit. C. HM should accept the offer because accepting it will contribute $12,400 to $55,500 to profit