Sherene Nili manages a company that produces wedding gowns. She produces both a custom product that is made to order and a standard product that is sold in bridal salons. Her accountant prepared the following forecasted income statement for Manch, which is a busy Number of dresses 70,000 8.900 290 19.900 500 4,100 1200 Machine depreciation Heat and light Other production costs Marketing and administration 0,a00 2.000 2.700 800 Total oost Operating prof 3 12.420 Ms. Nil already has orders for the 10 custom dresses reflected in the March forecasted income statement. The depreciation charges are for machines used in the respective product lines. Machines depreciate at the rate of $1 per hour based on hours used, so these are variable costs. In March, cuting and sewing machines are expected to operate for 830 hours, of which 590 hours will be used to make custom dresses. The rent is for the building space, which has been leased for several years at 56,800 per month. The rent, heat, and are allocated to the product ines based on the amount of floor space occupied A valued customer wa wedding consultant has asked MB NI. for a special tavor This customer has a cient to wants to get a ed in ear y A 11 Ms. NIrs company is wond g at capacity and would have to give up some other business to make tis dress. She can't renege on custom orders aready agreed to, but she can reduce the number of standard dresses produced in March to 10. Ms. Nil would lose permanently the opportunity to make up the lost production of standard dresses because she has no unused capacity for the foreseeable future. The customer is willing to pay $23,900 for the special order. Materials and labor for the order will cost 55,900 and 59.900, respectively. The special order would require 135 hours of machine time. Ms. Nii's compay would save 145 hours of machine t from the standard dress business given up. Rent heat and light and other production costs wouid not be alected by the special order. Required a-1. Calculale the differential operating proft Coss) (Select option "increase" or "decrease", keeping Without special order as the base. Select"none" if there is no effect.) Impact Materials Machine depraciaton Contribution margin Heat and light Other producion coats a-2. From an operating proft (oss) perspecfive for March, should Ms. Nii accept the order