of organic milk which can be sold for $2 per gallon to a pasteurization company, or the milk can be Macon Dairy Inc produces milk at a total cost of $75,000. The productiongenerates 55,000 gallons processed further into ice cream and then sold for $4.50 per gallon. It costs $92,000 more to turn the annual milk supply into ice cream. Should Macon sell milk now or process further into ice cream? (5 pts). If Macon processes further, how much is the incremental profit/loss? (Spts) 3. Tifton Corporation provided the following information regarding its only product: Sale price per unit Direct materials used Direct labor incurred Variable manufacturing overhead Variable selling and administrative expenses Fixed manufacturing overhead Fixed selling and administrative expenses Units produced and sold $60 $160,000 $230,000 $150,000 $60,000 $80,000 $10,000 12,000 Assume no beginning inventory Cordele Corp. has approached Tifton with a special order for 1,000 units at a sales price of $40 per unit. Assume Tifton has excess capacity and that regular sales wouldn't be affected by the special order. Fixed expenses do not vary with the number of units sold or produced. However, Tifton would incur an additional $2 per unit in selling costs for the special order and would have to purchase a $1,000 tool that has no other use and no resale value in order to produce the special order units. Should Tifton accept the special order?(5pts) What is the effect on income if Tifton accepts the special order?(5pts)