Special Order: High-Low Cost Estimation ABS, Inc. produces air bag systems that it sells to North American automobile manufacturers. Although the company has a capacity of 150,000 units per year, it is currently producing at an annual rate of 90,000 units. ABS, Inc. has received an order from a Japanese manufacturer to purchase 30,000 units at $8.75 each Budgeted costs for 90,000 and 120,000 units are as follows: 90,000 Units 120,000 Units Manufacturing costs Direct materials Direct labor Factory overhead Total 300,000 210,000 630,000 1,140,000 390,000 1,372,500 ,530,000 $225,000 157,500 607,500 990,000 382,500 Selling and administrative Total Costs per unit Manufacturing Selling and administrative Total 11.00 4.25 $15.25 9.50 3.25 $12.75 Sales to North American manufacturers are priced at $20 per unit, but the sales manager believes the company should aggressively seek the Japanese business even if it results in a loss of $4.00 per unit. She believes obtaining this order would open up several new markets for the company's product. The general manager commented that the company cannot tighten its belt to absorb the $120,000 loss ($4.00 30,000) it would incur if the order is accepted (a) Calculate the net advantage (disadvantage) of accepting the order from the Japanese business. Use a negative sign with your answer to indicate a net disadvantage, if applicable 105,00 V (b) Calculate the net advantage (disadvantage) of accepting the order from the Japanese business, assuming the company is operating at full capacity Use a negative sign with your answer to indicate a net disadvantage, if applicable 195,000) x