Special-Order Decision, Alternatives, Relevant Costs Redwood Elegance Company, manufactures wooden coffee tables for sale to specialty furniture store Currently, the company serat chain of furniture outlet stores has offered to buy 5,000 units of Redwood'somate rustic testing as the cheetha White the normal selling price is $125 per table, the chain has offered just $100 per table, Redwood can commodate the special order without affecting current at Unt cost information is as follows: Direct materials $25 Direct labor 10 Variable overhead 30 Fixed overhead 15 Total cost per table $80 Fixed overhead is $750,000 per year and will not be affected by the special order. Normally, there is a commission of 10 percent of prkehis will not be paid on the special order since the outlet chain is pealing directly with the company. The special order will require additional teed costs of 30,000 for the design and setup of the machinery to engrave the outlet chain's logo on each table Required: 1. Which alternative is more cost effective and by how much? Accept the special order The operating income would increase by 2. What if Redwood Elegance Company was operating at capacity and accepting the special order would require rejecting an cover oftast customers? Which alternative would be better? Regular sales