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.Lewis Company makes a product that regularly sells for 15.00... Lewis Company mak a product that regularly sells for $15.00 per unit. 0 (Clicklhe icon

.Lewis Company makes a product that regularly sells for 15.00...

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Lewis Company mak a product that regularly sells for $15.00 per unit. 0 (Clicklhe icon to view additional information.) 7. If Lewis Company has excess capacity, should it accept the oer from Wisme' Show your calculations. 3. Does youranswer change if Lewis Company is operating at capacity? Why or why not? T. lf Lewis Company has excess capacity. should it accept the offer from Wismef? 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 increasedea'ease) in operating income Lewis should T the other because operating income will V 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 parenthes.) Revenue at capadty sale prioe 0 More Info Less: Revenue at regular sale price Expected increasei(deoi'ease) in revenue The product has variable manufacturing costs of$1 0.60 per unit and l'ored manufacturing costs of $1.60 per unit (based on $190,000 total xed 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 5,300 units for $8.00 each. Selling and administrative costs and future sales will not be atfected by the sale, and Lewis does not expect any additional xed mats. Lewis should V the after if operating at capacity because operating income will V

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