mead case Study Below is the current income information for Radiance Inc. Per Unit Total Sales (400,000 units) 6.00 2,400,000 Direct Materials 1.44 576,000 Direct Labor 0.36 144,000 Variable Overhead 0.60 240,000 Contribution Margin 3.60 1,440,000 Fixed Overhead 0.20 80,000 Fixed Selling and Admin 0.15 60,000 Net Income 1,300,000 A customer has approached Radiance and offers to buy 50,000 units for 3.80 each. These sales would not affect the company's sales through its normal channels and Radiance has sufficient capacity to take the order. Details about the offer are as follows: Accepting the offer would require additional selling and admin costs of $5,000. The order would require a special high quality material in the production process. Each unit would require 0.40 pounds of this material and the material is expected to cost $0.80 a pound Required: 1. Should the company accept or reject the special offer? Explain. Part 11 Assume now that Radiance does not have sufficient capacity to take the order. The customer still insists on completing the order and changes their offer to pay $5.00/unit for 50,000 units. The customer still wants the special additive material and the company will still incur the additional selling and admin costs of 5,000 to take the order. Your management team has proposed a couple independent solutions to address this capacity issue - please assess each independently and determine whether it makes sense for the company to take the order under the proposed changes.