Special-Order Decision, Alternatives, Relevant Costs Redwood Elegance Compary, manufactures wooden coffee tables for sale to specialty furniture stores, Currently, the company is operating at 90 percent of capacity, A chain of furniture outiet stores has offered to buy 33,000 units of Redwond's ornate rustic tables as long as the table can be customized with the outiet chain's logo. While the normal selling price is $5.20 per table, the chain has offered just $3.30 per table. Redwood can accommodate the special order without affecting current sales. Unit cost information is as tollows Fxed overhead is 5414,000 per year and will not be affected by the special order. Normally, there is a commission of 7 percent of price; this will not be paid on the special order since the outiet chain is dealing directly with the company. The special order will require additional fixed costs of s13,500 for the design and setup of the machinery to engrave the outlet chain's loga on each table. Required: 1. Which altemative is more cost effective and by how much? The operating income would increase by 5 . 2. What if Redwood Cegance Company was operating at capacity and accepting the special order would require rejecting an equivalent number of tables sold to existing customers? Which alternative would be better