Seved Help Save & E Submit Assessment 4: (Algo) Harcourt Manufacturing (HM) has the capacity... LO 13-2 Harcourt Manufacturing (HM) has the capacity to produce 10100 fax machines per year. HM currently produces and sells 7300 units per year. HM currently leases its excess capacity for a rental fee of $14,000. The fax machines normally sell for $110 each. Modem Products has offered to buy 200 fax machines from HM for $65 each. Unit-level costs associated with manufacturing the fax machines are $17 each for direct labor and $12 each for direct materials. Product level and facility level costs are $51,000 and $66.000, respectively. Based on this information (ignore qualitative characteristics) Multiple Choice HM should reject the offer because accepting it wil reduce profitability by $1400 HM should accept the offer because accepting it will contribute $100 to profit HM should reject the offer because accepting it wil reduce profitability by $10,000 10 11 of 26 !! a E O to search