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 forecastad income statement for March, which is a busy month: Custom DressesStandard Dreeses Total 30 $ 75,000 17,000 Numbar of dres888 Sales revenue 10 9,500 19.500 550 3,700 1,000 $27,500 500 8,500 250 2,300 600 Machine depreciation Rent Heat and light Other production costs Marketing and administration 6,000 1,600 2,300 Total coets Operating profit S 12,100 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 the respective product lines. Machines depreciate at the rate of S1 per hour based on hours used, so these are variable costs. In March, cutting and sewing machines are expacted to operate for 800 hours, of which 550 hours will be used to make custom dresses. The rent is for the building space, which has been leased for several years at $6,000 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. Nili 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 praduced in March to 10. Ms. Nili 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 $22,900 for the special order. Materials and labor for the order will cost $5,500 and $9,500, respectively. The special order would require 115 hours of machine time. Ms Nill's company would save 125 hours of machine time from the standard dress business given up. Rent, heat and light, and other production costs would not be aftected by the special order Required: a-1. Calculate the differential operating profit (loss) (Select option "increase" or "decrease", keeping Without special order as the base. Select "none" if there is no effect.) With Materials Labor Machine depreciation Contrbution margin Heat and light Other production costs Markeing and administration Operaing profit (loss) a-2. From an operating profit (loss) perspective for March, should Ms. Nili accept the order? No b. What is the minimum price Ms. Nili should accept to take the special order