OneCo Inc. produces a single product. Cost per unit, based on the manufacture and sale of $10,000$ units per month at full capacity, is shown below.Direct materialsDirect laborVariable overheadFixed overheadSales commission$1\mathrm{.}302\mathrm{.}503\mathrm{.}4090$$$12\mathrm{.}10$The $$0\mathrm{.}90$ sales commission is paid for every unit sold through regular channels. Market demand is such that OneCo is operating at full capacity, and the firm has found it can sell all it can produce at the market price of S$16\mathrm{.}50.$Currently, OneCo is considering two separate proposals: Gatsby, Inc. has offered to buy $1,000$ units at $$14\mathrm{.}35$ each. Sales commission would be S$0\mathrm{.}35$ on this special order. Zelda Productions, Inc. has offered to produce $1,000$ units at a delivered cost to OneCo of $$14\mathrm{.}50$ each.REQUIRED:$1.$ What would be the effect on OneCo's operating income if it accepts of the proposal from Gatsby, but rejects the proposal from Zelda?$2.$ What would be the effect on OneCo's operating income if it accepts of the proposal from Zelda, but rejects the proposal from Gatsby?$3.$ What would be the effect on OneCo's operating income if it accepts both proposals?$4.$ Assume Gatsby has offered a second proposal to purchase $2,000$ units at the market price of $$16\mathrm{.}50,$ but has requested product modifications that would increase direct materials cost by $$\mathrm{.}30$ per unit and increase direct labor and variable overhead by $15\%.$ The sales commission would be $$\mathrm{.}35$ per unit. Should OneCo accept this order? Explain your recommendation$\mathrm{.}5.$ Under the situation described above, would your recommendation be different if the company had excess capacity? Explain your answer$\mathrm{.}6.$ Identify and describe at least two factors other than the effect on income that OneCo should consider before making a decision on the proposals.