Roberts Company makes a product that regularly sells for $13.00 per unit. (Click the icon to view additional information.) 7. If Roberts Company has excess capacity, should it accept the offer from Wellington? Show your calculations. 8. Does your answer change if Roberts Company is operating at capacity? Why or why not? 7. If Roberts Company has excess capacity, should it accept the offer from Wellington? Show your calculations. (Use a minus sign or parentheses to show a decrease in operating income.) Expected increase in revenue Expected increase in variable manufacturing costs 66,000 (44,000) $ 22,000 Expected increase/(decrease) in operating income Roberts should accept the offer because operating income will increase by $22,000. 8. Does your answer change if Roberts Company is operating at capacity? Why or why not? (Enter an expected decrease in revenue with a minus sign or parentheses.) Revenue at capacity sale price Less: Revenue at regular sale price More info Expected increase/(decrease) in revenue The product has variable manufacturing costs of $8.00 per unit and fixed manufacturing costs of $2.20 per unit (based on $242,000 total fixed costs at current production of 110,000 units). Therefore, total production cost is $10.20 per unit. Roberts Company receives an offer from Wellington Company to purchase 5,500 units for $12.00 each. Selling and administrative costs and future sales will not be affected by the sale, and Roberts does not expect any additional fixed costs