K Peters Company makes a product that regularly sells for $11.50 per unit. (Click the icon to view additional information.) 7. If PetersCompany has excess capacity, should it accept the offer from PowellShow your calculations. 8. Does your answer change if PetersCompany is operating at capacity? Why or why not? 7. If Peters Company has excess capacity, should it accept the offer from Powell? Show your calculations. (Use a minus sign or parentheses to show a decrease in operating income.) Expected increase in revenue Expected increase in variable manufacturing costs Expected increase/(decrease) in operating income Peters should the offer because operating income will 8. Does your answer change if Peters Company is operating at capacity? Why or why not? (Enter an expected decrease in revenue with a minus sign or parentheses.) Revenue at capacity sale price Less: Revenue at regular sale price Expected increase/(decrease) in revenue C Peters should the offer if operating at capacity because operating income will

Petecs Company makes a product that regulany solis for $11.$0 per unt. (1) (Click the icon bo view additional information) 7. If Peters Company has excess capacity, should it acenpt the offer hom Powelishow your calculations. 8. Does your answer change \& Peterscompany la operating at capactor? Why or why not? 7. If Peters Company has excess capacty, should \& accept the ofter tom Powel? Show your calculatons. (Use a minus sign or parentheses bo show a decrease in operating income) Expected increase in revenue Expected increase in varlable manufacturing cests Expected increase (decrease) in eperating income Peters should the offer becaute operating incomo will Revenue at capacity sale price Less: Revenue at regular sale price Expected increase(dectease) in revenue Pelers should the offer doperaing at capacily becouse operasing inceme wal has excess capacity, should it accept the offer from PowellShow your calculations. More info The product has variable manufacturing costs of $7.50 per unit and fixed manufacturing costs of $2.10 per unit (based on $252,000 total fixed costs at current production of 120,000 units). Therefore, total production cost is $9.60 per unit. Peters Company receives an offer from Powell Company to purchase 5,200 units for $8.50 each. Selling and administrative costs and future sales will not be affected by the sale, and Peters does not expect any additional fixed costs