Special Order: High-Low Cost Estimation SafeRide, Inc. produces air bag systems that sets to North American automobile manufacturers. Although the company has a capacity of 300.000 units per year, is currently producing at an annual rate of 180,000 units. SafeRide, Inc. has received an order from a German manufacturer to purchase 60.000 units at $11.00 each. Budgeted costs for 180.000 and 240.000 units are as foliows 180,000 units 240,000 UNITS Manufacturing costs Direct materials SSDOO 500.000 Director 315.000 110,000 Factory overhead 1.215.000 1.200.000 Total 1.900.000 2000 Selling and 16.00 700.000 52.745.000 S000 Costs per unit Manufacturing $9.50 Selling and admin 235 Total 515.25 Sales to North American manufacturers are priced at 523 per unit but the sales manager believes the company should apsively seek the German business even if results in a loss of 51.75 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 tightenis belt to absorb the $105,000 fos (51.7560.000) it would incur if the order is accepted a) Determine the financial implications of accepting the order. (Hint: Use the high low method to determine variable costs per unit) Accepting the offer will profits by 10 (a) Determine the financial implications of accepting the order. (Hint: Use the high-low method to determine variable costs per unit) Accepting the offer will profits by so (b) How would your analysis differ if the company were operating at capacity? Determine the advantage or disadvantage of accepting the order under full capacity circumstances Use a negative sign with your answer to indicate a net disadvantage. If applicable. so