The Anderson Company, a maker of a variety of metal and plastic products, is in the midst of a business downturn and is saddled with many idle facilities. Delaware Health Care has approached Anderson to produce 270,000 nonslide serving trays. Delaware will pay $1.70 each. Anderson predicts that its variable costs will be $1.85 each. Its fixed costs, which had been averaging $1 per unit on a variety of other products, will now be spread over twice as much volume, however. The president commented, "Sure we'll lose $0.15 each on the variable costs, but we'll gain $0.70 per unit by spreading our fixed costs. Therefore, we should take the offer because it represents an advantage of $0.55 per unit." Suppose the regular business had a current volume of 270,000 units, sales of $594,000, variable costs of $499,500, and fixed costs of $270,000. Requirement 1. Do you agree with the president? Why