Lewis Company makes a product that regularly sells for $15.00 per unit (Click the icon to view additional information.) 7. If Lewis Company has excess capacity, should it accept the offer from Wismer? Show your calculations. 8. Does your answer change if Lewis Company is operating at capacity? Why or why not? More Info 7. If Lewis Company has excess capacity, should it accept the offer from Wismer? Show your calculations. (Use a minu Expected increase in revenue Expected increase in variable manufacturing costs Expected increase/(decrease) in operating income Lewis should The product has variable manufacturing costs of $10.00 per unit and fixed manufacturing costs of $1.60 per unit (based on $190,000 total fixed costs at current production of 150,000 units). Therefore, total production cost is $11.60 per unit. Lewis Company receives an offer from Wismer Company to purchase 5,800 units for S8.00 each. Selling and administrative costs and future sales will not be affected by the sale, and Lewis does not expect any additional fixed costs the offer because operating income will Print Done Revenue at capacity sale price Less: Revenue at regular sale price Expected increase/(decrease) in revenue Lewis should | | the offer if operating at capacity because operating income will