Structuring a Special-Order Problem Rabbit Foot Motors has been approached by a new customer with an offer to purchase 5,000 automotive model-the SMAK-at a price of $18,000 per automobile. Rabbit Foot's other sales would not be affected by offer. Rabbit Foot year. The normal sales price is $35,000 per SMAK. Unit cost information for the normal level of activity is as follows: Direct materials Direct labor Variable overhead Fixed overhead units of its normally produces 100,000 units of its SMAK model per year but only plans to produce and sell 90,000 in the coming $10,000 2,000 4,000 8,000 $24,000 Tota Fixed overhead will not be affected by whether or not the special order is accepted. Required: 1. What are the relevant costs and benefits of the two alternatives (accept or reject the special order)? 2. By how much will operating income increase or decrease if the order is accepted? by Direct materials Direct labor Variable overhead Fixed overhead $10,000 2,000 4,000 8,000 Special order price, direct materials, direct labor, and variable overhead Special order price, direct materials, direct labor, variable overhead, and fixed overhead. Normal price, direct materials, direct labor, and variable overhead. Normal price, direct materials, direct labor, variable overhead, and fixed overhead. 2. By how much will operating income increase or decrease if the order is accepted? Direct labor Variable overhead Fixed overhead $10,000 2,000 4,000 8,000 $24,000 Total Fixed overhead will not be affected by whether or not the special order is accepted Required: 1. What are the relevant costs and benefits of the two alternatives (accept or reject the special order)? Increase 2. B Decrease will operating income increase or decrease if the order is accepted? by