The option I already have selected was incorrect.

Harcourt Manufacturing (HM) has the capacity to produce 10,700 fax machines per year. HM currently produces and sells 7,700 units per year. HM currently leases its excess capacity for a rental fee of $35,000. The fax machines normally sell for $170 each. Modern Products has offered to buy 2,700 fax machines from HM for $95 each. Unit-level costs associated with manufacturing the fax machines are $29 each for direct labor and $54 each for direct materials. Product-level and facility-level costs are $57,000 and $72,000, respectively. Based on this information {ignore qualitative characteristics) Multiple Choice 0 HM should reject the offer because accepting it will reduce protability by $2,600. 0 HM should accept the offer because accepting it will contribute $10,700 to prot. 0 HM should reject the offer because accepting it will reduce protability by $10,700. Multiple Choice O HM should reject the offer because accepting it will reduce profitability by $2,600. O HM should accept the offer because accepting it will contribute $10,700 to profit. O HM should reject the offer because accepting it will reduce profitability by $10,700. HM should accept the offer because accepting it will contribute $35,000 to profit