Lewis Company makes a product that regularly sells for $11.50 per unit. (Click the icon to view additional Information.) 7. If Lewis Company has excess capacity, should it accept the offer from Wellington? Show your calculations. 8. Does your answer change if Lewis Company is operating at capacity? Why or why not? 7. If Lewis Company has excess capacity, should it accept the offer from Wellington? 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 Lowis should the offer because operating income will 8. Does your Lewis Company is operating at capacity? Why or why not? (Enter an expected decrease in revenue with a minus sign or parentheses.) reject Revenue at ci accept Less: Revenu. . . price i More Info Expected increase (decrease) in revenue Lewis should the offer if operating at capacity because operating income will The product has variable manufacturing costs of $9.00 per unit and fixed manufacturing costs of $2.20 per unit (based on $176,000 total fixed costs at current production of 80,000 units). Therefore, total production cost is $11.20 per unit. Lewis Company receives an offer from Wellington Company to purchase 5.200 units for $8.00 each. Selling and administrative costs and future sales will not be affected by the sale, and Lewis does not expect any additional fixed costs. Enter any number in the edit fields and then continue to the next question, Print Done Lewis Company makes a product that regularly sells for $11.50 per unit. (Click the icon to view additional information.) 8. Does your answer change if Lewis Company is operating at capacity? Why or why not? 7. If Lewis Company has excess capacity, should it accept the offer from Wellington? 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 Lewis should the offer because operating income will iter an expected decrease in revenue with a minus sign or parentheses.) 8. Does your answer change if Lewis Company is operating at increase by $5,200. Revenue at capacity sale price Increase by $1,560. Less: Revenue at regular sale price decrease by $5,200. Expected increase/(decrease) in revenue decrease by S1,560. Lewis should the offer if operating at capacity because operating income will i More Info The product has variable manufacturing costs of $9.00 per unit and fixed manufacturing costs of $2.20 per unit (based on S176,000 total fixed costs at current production of 80,000 units). Therefore, total production cost is $11.20 per unit. Lewis Company receives an offer from Wellington Company to purchase 5,200 units for $8.00 each. Selling and administrative costs and future sales will not be affected by the sale, and Lewis does not expect any additional fixed costs. Enter any number in the edit fields and then continue to the next question. Print Done Lewis Company makes a product that regularly sells for $11.50 per unit. (Click the icon to view additional information.) 7. If Lewis Company has excess capacity, should it accept the offer from Wellington? Show your calculations. 8. Does your answer change if Lewis Company is operating al capacity? Why or why not? 7. If Lewis Company has excess capacity, should it accept the offer from Wellington? 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 Lewis should the offer because operating income will 8. Does your answer change if Lewis Company is operating at capacity? Why or why not? (Enter ar Revenue at capacity sale price Less: Revenue at regular sale price i More Info Expected increase/(decrease) in revenue Lewis should the offer if operating at capacity because operating income will The product has variable manufacturing costs of $9.00 per unit and fixed manufacturing costs of $2.20 per unit (based on $176,000 total fixed costs at reject accept unit. Lewis Company receives an offer from Wellington Company to purchase 5,200 units for $8.00 each. Selling and administrative costs and future sales will not be affected by the sale, and Lewis does not expect any additional fixed costs. Enter any number in the edit fields and then continue to the next question. Print Done Lewis Company makes a product that regularly sells for $11.50 per unit. (Click the icon to view additional information.) 7. If Lewis Company has excess capacity, should it accept the offer from Wellington? Show your calculations. 8. Does your answer change if Lewis Company is operating at capacity? Why or why not? 7. If Lewis Company has excess capacity, should it accept the offer from Wellington? 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 Lewis should the offer because operating income will 8. Does your answer change if Lewis 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 More Info Lewis should the offer if operating at capacity because operating income will decrease by $18,200. decrease by $5,200. increase by $18,200. increase by $5,200. The product has variable manufacturing costs of $9.00 per unit and fixed manufacturing costs of $2.20 per unit (based on S176,000 total fixed costs at current production of 80.000 units). Therefore, total production cost is $11.20 per unit. Lewis Company receives an offer from Wellington Company to purchase 5,200 units for $8.00 each. Selling and administrative costs and future sales will not be affected by the sale, and Lewis does not expect any additional fixed costs. Enter any number in the edit fields and then continue to the next question. Print Done