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 folowing forecasted income statement for March, which is a busy month: 10 $47,000 $ 9,400 19,400 540 3,600 1,100 20 $27,000 $ 7,400 8,400 240 2,200 700 30 $74,000 $16,800 27,800 780 5,800 1,800 2,200 7.100 62,280 $ 11,720 Number of dresses Sales ravenue Materials Labor Machine depreciation Rent Heat and ight Other production cost Marketing and administration Total costs Operating profit Ms. Nili already has orders for the 10 custom dresses reflected in the March forecasted income statement. The depreciation charges are for machines used in t respective product lines. Machines depreciate at the rate of $1 per hour based on hours used, so these are variable costs. In March, cutting and sewing machines are expected to operate for 780 hours, of which 540 hours will be used to make custom dresses. The rent is for the building space, which has been leased for several years at $5,800 per month. The rent, heat, and light are allocated to the product lines based on the amount of floor space occupied A valued customer, who is a wedding consultant, has asked Ms. Nil for a special favor. This customer has a client who wants to get married in early April. Ms. Nilil's company is working at capacity and would have to give up some other business to make this dress. She can't renege on custom orders already agreed to, but she can reduce the number of standard dresses produced in March to 10. Ms. Nili would lose permanently the standard dresses because she has no unused capacity for the foreseeable future. The customer is willing to pay $22,600 for the special order. Materials and labor for the order will cost $5,400 and $9,400, respectively. The special order would require 110 hours of machine time. Ms. Nili's company would save 120 hours of machine time from the standard dress business given up. Rent, heat and light, and other production costs would not be affected by the special order nity to make up the lost production of Required: the differential operating profit (loss). (Select option "increase or"decrease" keeping Without special order as the base. Select "none" it there is no effect.) Without With Special Impact al Order Order Revenue Materials Labor Machine depreciation A valued customer, who is a wedding consultant, has asked Ms. Nill for a special favor. This custorner has a client who wants to get marriod in early Apri Nilil's company Is working at capacity and would have to give up some other business to make this dress. She can't renege on custom orders already agre but she can reduce the number of standard dresses produced in March to 10. Ms. Nill would lose permanently the opportunity to make up the lost product standard dresses because she has no unused capacity for the foreseeable future. The customer is willing to pay S22 600 for the special order. Mate labor for the order will cost $5,400 and $9.400, respectively. The special order would require 110 hours of machine time. Ms. Nits company would save 1 hours of machine time from the standard dress business given up. Rent, heat and light, and other production costs would not be affectod by the special c Requlred: a-1. Calculate the differential operating profit (loss) (Select option "Increase" or "decrease", keeping Without speclal order as the base. Soloct "no there ls no effect.) mpact Revenue Materials Labor Contribution margin Rent Heat and ight Other production costs Marketing and administration Operating profit (loss) a-2. From an operating profit (loss) perspective for March, should Ms. Nili accept the order? Yes No b. What is the minimum price Ms. Nill should accept to take the special order? inmum price