RELEVANT COSTING PROBLEM SET (1.) ACCEPTANCE OF ADDITIONAL ORDERS. Grips and Turns Corp. manufactures door knobs and cabinet handles. It has enough capacity to accept a special order of 10,000 cabinet handles at P8.00 per handle. A predicted income statement for the year without this special order is as follows: Account Per Unit Total Sales revenue P 12.50 P 1,250,000 Manufacturing costs Fixed 1.75 175,000 Variable 6.25 625,000 Total manufacturing cost 8.00 800,000 Gross profit 4.50 450,000 Marketing costs Variable 1.80 180,000 Fixed 1.45 145,000 Total marketing costs 3.25 325,000 Operating profit 1.25 125,000 If an order is accepted, variable selling costs on the special order would be reduced by 25% because all of the handles would be packed and shipped in one lot. However, if the offer is accepted, management estimates that it will lose the sale of 2,000 handles at regular prices. Should management accept the offer