The following is the income statement of Home Box in 2020 (Sept.): Sale $ 40,000,000 Cost of goods sold-COGS $ 28,000,000 Gross margin $ 12,000,000 Selling and administrative expenses $ 10,000,000 NOI $ 2,000,000 The capacity of Home Box is 2,500,000 units under the price of $ 20 per unit. The variable manufacturing cost equals 70 percent of COGS and variable selling and administrative expenses amounted to 5,000,000. The commission is 2% of the selling price. Home Box received a special offer from Ajman Co. for 100% of unused capacity at 60% of the normal price. The variable cost per unit under special order will soar up by 20 percent Required: 1. Based on the special order concept, provide advice to the management on the decision to accept or to reject the offer. Show computation. 2. What would be the decision if the variable cost per unit remains the same under normal sales and special-order price of 10 per unit. 3.Give a brief comparison between the results derived under part 1 and part 2. A comparison should be supported by computation. 4.What would be the change under part one if the acceptance of special order will create incremental fixed costs of $ 200000