The first drop-down box in each question is either "accept" or "reject" and the 2nd drop-down box has one of four options, "decrease by $11,000", "decrease by $13,200", "increase by $11,000, or "increase by $13,200".

Also please don't forget to use a "minus" sign or parenthesis for any negative values.

Thanks for your help

Jones Company makes a product that regularly sells for $13.50 per unit (Click the icon to view additional information.) 7. If Jones Company has excess capacity, should it accept the offer from Telstar? Show your calculations. 8. Does your answer change if Jones Company is operating at capacity? Why or why not? 7. If Jones Company has excess capacity, should it accept the offer from Telstar? Show your calculations. (Use a minus sign or parentheses to show a decrease in operating income.) Expected increase in revenue X Expected increase in variable manufacturing costs More Info Expected increase/(decrease) in operating income Vthe offer because operating income will Jones should The product has variable manufacturing costs of $8.00 per unit and fixed manufacturing costs of $2.50 per unit (based on $225,000 total fixed costs at current production of 90,000 units). Therefore, total production cost is $10.50 per unit. Jones Company receives an offer from Telstar Company to purchase 4,400 units for $10.50 each. Selling and administrative costs and future sales will not be affected by the sale, and Jones does not expect any additional fixed costs. 8. Does your answer change if Jones Company is operating at capacity? Why or why not? (Enter an expected decrease in revenue with a minus sign or parentheses.) Revenue at capacity sale price Less: Revenue at regular sale price Expected increase/(decrease) in revenue Print Done the offer if operating at capacity because operating income will Jones should