Peter company produces a product with the following unit cost : Direct Material Direct Labour Variable overhead Fixed Overhead Unit cost S 2.75 1.25 4.00 2.50 10.50 Fixed selling costs are $600.000 per year and variable selling costsare $1.50 per unit sol Production capacity is 500.000 units per year. However, the company expects to produc only 300,000 units per year. The product normally sells for $15 each. A customer has offered to buy 150.000 units for $10. The units would be sold in an area outside the market area currently served REQUIRED 1. Calculate the incremental cost per unit associated with the special order. 2. What is the total incremental cost associated with special order? 3. What be the effect on income if the firm produces the special order? By how much will it increase or decrease the income