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Roberts Company makes a product that regularly sells for $15,50 per unit (i) (Click the icon to viow additionai information) 7. If Robents Company has
Roberts Company makes a product that regularly sells for $15,50 per unit (i) (Click the icon to viow additionai information) 7. If Robents Company has excess capacity, should it accopt the offer from Harcourt? 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 Harcourt? Show your caiculations, (Use a minus sign or parenthesest to ahow a doces aperiting income.) Roberts should the offer because operating income wit Roberts Company makes a product that regularty sells for $15.50 per unit. i. (Cidk Ere icon to view addifional information.) 7. I Robeits Congany has excess capadty, should it accopt the offor form Hareourt? Show your calculafions. 8. Does youn answer change is Roberts Company is operating at capacity? Why or why not? Expected increasel(decrease) in operating income Roberts thould the offer because operating incomp will 8. Does your answer change H Roberts Company is operating at capacity? Why or why not? (Entor an expected decrease in ceventue weh a minus aign or parunthesere ) thoberte should the ofter if operating at capacity because operathg income will The product has variable manufacturing costs of $11.50 per unit and fixed manufacturing costs of $2.10 per unit (based on $294,000 total fixed costs at current production of 140,000 units). Therefore, total production cost is $13.60 per unit Roberts Company receives an offer from Harcourt Company to purchase 4.600 units for $7.00 each. Selling and administrative costs and future sales will not be affected by the sale, and Roberts does not expect any additional fixed costs
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