Prince Edward County Vineyard produces premium wine. Its success in the industry is due to its quality, although all its customers, wine shops, and specialty grocery stores, are very cost conscious and negotiate for price cuts on all large orders. Noting that the wine industry is becoming increasingly competitive, Prince Edward County is looking for a way to meet the challenge. It is negotiating with Eastern Seasons, a regional specialty grocery store, regarding a large order of wine. Prince Edward County is currently producing at under-capacity and would like to keep its production facilities going. gaining better economies of scale by increasing production. Eastern Seasons has agreed to a large order (2.000 bottles), but only at a price of $39 per bottle. The special order can be produced in one batch with available capacity. Prince Edward County gathered the following information: Next month's budgeted operating Information (based on 10,000 units/month and a normal batch size of 1,000 bottles): s 55 Regular sales price (per bottle) Ter-unit costs: Variable manufacturing costs Bateh-level costs (incurred with each batch produced) Variable marketing costs Fixed manufacturing costs Fixed marketing costs 22 5 10 6 2 No variable marketing costs would be associated with the special order, but Prince Edward County has spent $2,500 during the past two months trying to get Eastern Seasons to execute a deal. Prince Edward County would also have to buy a special embossing machine at a cost of $2,000 due to the cast gloss paper adhesion requirements of Eastern Seasons order which will only be used once. Required: (Use MS Excel and Word only for answers - do not use the text box.) 1. How much will the special order change Prince Edward County's total operating Income? 2. How much would the special order change Prince Edward County's total operating income if Prince Edward County is operating at full capacity and, if It accepted the order from Eastern Seasons. would lose the sale of 2,000 bottles to regular customers? (Assume that sales lost to normal customers would be produced in two batches of 1000 bottles, while the special orders above-could be produced in a single batch of 2,000 bottles.) 3. How might the special order fit into Prince Edward County's competitive strategy