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please solve with explanation Cora Corporation produces refrigerator units. The company's normal production and sales volume of Standard units is 6,250 units per month, and

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Cora Corporation produces refrigerator units. The company's normal production and sales volume of Standard units is 6,250 units per month, and units sell for $1,040 each. The costs of manufacturing and marketing a Standard model are as follows: $ 370 Variable manufacturing cost per unit Variable marketing cost per unit Fixed product cost Fixed period cost 105 625,000 500,000 The company is considering diversifying the product line to include two additional models, Economy and Deluxe, which would sell for 5860 and $1,000 per unit, respectively. The costs of manufacturing these new models are as follows: Variable manufacturing cost Variable marketing cost Economy 41% below Standard 5% above Standard Deluxe $625 Twice Standard Total fixed product and period costs are expected to remain unchanged. Cora expects to sell 2,500 units of the Economy model and 2,250 units of Deluxe model per month. The company cannot expand its production capacity beyond its current level of 6,250 units. Required: 1. If Standard Model is the only product what would the Operating income be? Operating income Required: 1. If Standard Model is the only product what would the Operating income be? Operating income 2-a. Suppose that a supplier is willing to supply 1,500 units of the Standard model at a price of $370 per unit. Also assume that the company can sell all that it can produce of the remaining two models. Should the offer of the supplier be accepted? Yes No 2.b. Which of the model should produced? Standard Model Economy Model Delux Model

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