(suggested time 7 minutes, 4 marks) Jack Jack Company produced and sold 7,000 units of product and is operating at 70% of plant capacity Unit information about product is as follows: Sales price $40/unit Variable manufacturing costs 525/unit Profit $10/unit Total fixed overhead $35,000 westion The company received a proposal from a foreign company to buy 1500 units for $2a per unit. This is a one-time only order and acceptance of this proposal will not affect the company's regular sales. The president of Jack Jack Company is reluctant to accept the proposal because he is concerned that the company will lose money on the special order. All fixed costs are allocated to individual products and will not change. 1) How many units could the plant produce if it was operating at full capacity? units Consider the incremental impact on the company's net income if they accept this order. 2) Incremental income impact results in a higher or lower net income? e 3) Incremental income impact in dollars $ 4) Are fixed costs relevant