Roberts Company makes a product that regularly sells for $15.00 per unit. (Click the icon to view additional information) 7. If Roberts Company has excess capacity, should it accept the offer from Wesley? Show your calculations. 8. Does your answer change if Roberts Company is operating at capacity? Why or why nott? 7. If Roberts Company has excess capacity, should it accept the offer from Wesley? Show your calculations. (Use a minus sign or parentheses in operating income.) Expected increase in revenue Expected increase in variable manufacturing costs Expected increase/ (decrease) in operating income 45600 50400 Roberts should reject the offer because operating income vill decrease by $4.800. , Does your answer change i Roberts Company i perating at capacty? Why or y n ter an espected decrease in revenue with a mius or parentheses) or why not? (Enter an expected decrease in revenue with a minus Enter any number in the edit fields and then continue to the next question. Roberts Company makes a product that regularly sells for $15.00 per unit (Click the icon to view additional information) 7. If Roberts Company has excess capacity, should i accept the offer from Wesley? Show your calculations 8.Does your answer change if Roberts Company is operating at capacity? Why or why not? (4800 Expected increase/ (decrease) in operating income Roberts should reject the fer because operating income vill decrease by $4,800 8. Does your answer change f Roberts Company is operating at capacity? Why or why not? (Enter an expected decrease in revenue with a minuss or parentheses) Revenue at capacity sale price Less Revenue at regular sale price Expected increase/(decrease) in revenue Roberts should accept the offer it operating at capacity because operating income will Increase by $26,400 Enter any number in the edit felds and then continue to the next quesson 72000 45600 26400 search product that regularly sells for $15.00 per unit. dditional information.) excesS f Rob @ More Info ase) in ope the ofler be manufacturing cstst 70.000 units), Therefore, vieah ev Company to purchate ange if ge The product has variable manufacturing costs of $10.50 per unit and fixecd manufacturing costs of $1.70 per unit (based on $119,000 total fixed costs at current production of 70,000 units). Therefore, total production cost is $12.20 per e with a minus sign inge Robeunit. Roberts Company receives an offer from Wesley Company to purchase ale price lar sale price ecrease) in rev pt the offer if operaung ar capacny t n the edit fields and then continue to the next question 4,800 units for $9.50 each. Selling and administrative costs and future sales will not be affected by the sale, and Roberts does not expect any additional fixed costs Print Done