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Edwards Company makes a product that regularly sells for $10.50 per unit. Yiew ther additional information 7. If Edwards Company has excess capacty, should it accept the offer from Powell Company? Show your calculations. 3. Does your answer change if Edwards Company is operating at capacity? Why or why not? Additional Information The product has variable manufacturing costs of $7.00 per unit and fixed manufacturing costs of $2.50 per unit (based on $225,000 total fixed costs at current production of 90,000 units). Therefore, the total production cost is $9.50 per unit. Edwards Company receives an offer from Powell Company to purchase 4,400 units for $12.00 each. Selling and administrative costs and future sales will not be affected by the sale, and Edwards Company does not expect any additional fixed costs