The Velasquez 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. Columbia Health Care has approached Velasquez to produce 300 comma 000 nonslide serving trays. Columbia will pay $ 1.50 each. Velasquez predicts that its variable costs will be $ 1.60 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 $ 0.10 each on the variable costs, but we'll gain $ 0.50 per unit by spreading our fixed costs. Therefore, we should take the offer because it represents an advantage of $ 0.40 per unit." Suppose the regular business had a current volume of 300 comma 000 units, sales of $ 600 comma 000, variable costs of $ 480 comma 000, and fixed costs of $ 300 comma 000. Requirement 1. Do you agree with the president? Why