The following information relates to current production of outdoor chaise lounges at Backyard Posh: Variable manufacturing costs per unit- $104 Total fixed manufacturing costs - $555,000 Variable marketing and administrative costs per unit- $33 Total fixed marketing and administrative costs- $300,000 The regular selling price per chaise lounge is $310. The company is analyzing the opportunity to accept a special sales order for 1,000 chaise lounges at a price of $245 per unit. Fixed costs would remain unchanged. The company has the capacity to produce 25,000 chaise lounges per year, but is currently producing and selling 10,000 chaise lounges per year. Regular sales will not be affected by the special order. What is the impact on operating income if the company accepts the special order? - is erur - per affe: rder A. Decrease by $245,000 B. Increase by $108,000 C. Increase by $245,000 Decrease by $108,000 Carrier Mailbox produces decorative mailboxes. The company's average cost per unit is $ 25.43 when it produces 1,500 mailboxes. Requirements 1. What is the total cost of producing 1,500 mailboxes? 2. If 21,645 of the total costs are fixed, what is the variable cost of producing each mailbox? 3. Write Carrier Mailbox's cost equation. 4. If the plant manager uses the average cost per unit to predict total costs, what would the forecast be for 1,900 mailboxes? 5. If the plant manager uses the cost equation to predict total costs, what would the forecast be for 1,900 mailboxes? 6. What is the dollar difference between your answers to questions 4 and 5? Which approach to forecasting costs is appropriate? Why