Stregobor Corp produces all the parts it uses to manufacture its products. The following costs per unit were incurred in manufacturing 75,000 units of Part B99: Direct materials Direct labour Variable overhead Fixed overhead Sales Variable costs Fixed costs Operating income $ A supplier has offered to sell 75,000 units of part B99 to Stregobor for $12 per unit. If Stregobor accepts the offer, fixed overhead could be reduced by 50% per unit. In addition, the facilities used to produce B99 could be used to manufacture Part C182 for which Stregobor has been unable to meet current demand. Sales of C182 should increase by 30%. The most recent income statement for part C182 is as follows: Required: a) b) 3.50 2.00 1.50 6.00 $360,000 168,000 120,000 72,000 Calculate the change in Stregobor's incremental income if the supplier's offer is accepted. Should the supplier's offer be accepted?