Lewis Company makes a product that regularly sells for $15.50 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 signo 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 rekenue 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 More Info The product has variable manufacturing costs of $6.50 per unit and fixed manufacturing costs of $1.80 per unit (based on $126,000 total fixed costs at current production of 70,000 units). Therefore, total production cost is $8.30 per unit. Lewis Company receives an offer from Wellington Company to purchase 4,400 units for $10.50 each. Selling and administrative costs and future sales will not be affected by the sale, and Lewis does not expect any additional fixed costs. Print Done