The Hester 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. Fulton Health Care has approached Hester to produce 320,000 nonslide s Hester predicts that its variable costs will be $1.75 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 $0.05 each on the variable costs, but we'll gain S0.70 per unit by spreading our fixed costs Therefore, we should take the offer because it represents an advantage of $0.65 per unit." Suppose the regular business had a current volume of 320,000 units, sales of $704,000, variable costs of $560,000, and fixed costs of $320,000 Requirement 1. Do you agree with the president? Why? Begin by computing the net income (loss) for the current volume (do not include the special order). (Use parentheses or a minus sign for a net loss.) serving trays. Fulton will pay $1.70 each. Regular Revenue Variable costs Contribution margin Fixed costs Net income (loss) Now compute the net income (loss) when Hester will produce the regular units and the special order. (Use parentheses or a minus sign for net losses.) Regular Special Total Revenue Variable costs Contribution margin Fixed costs Net income (loss) (Enter all amounts as positive numbers.) Vwith the president. If Hester were to take on the special order, the total fixed costs will be S and the total Vwill be S With the special order the fixed costs per unit have | ?| from $1 to $1 I. The moral is Enter any number in the edit fields and then continue to the next