Thomas Company makes a product that regularly sells for $12.50 per unit. (Click the icon to view additional information.) 7. If Thomas Company has excess capacity, should it accept the offer from Wesley? Show your calculations. 8. Does your answer change if Thomas Company is operating a decrease by $2,500. 7. If Thomas Company has excess capacity, should it accept the c decrease by $10,000. culations. (Use a m Expected increase in revenue increase by $2,500. Expected increase in variable manufacturing costs increase by $10,000. More info The product has variable manufacturing costs of $8.50 per unit and fixed manufacturing costs of $2.00 per unit (based on $200,000 total fixed costs at current production of 100,000 units). Therefore, total production cost is $10.50 per unit. Thomas Company receives an offer from Wesley Company to purchase 5,000 units for $9.00 each. Selling and administrative costs and future sales will not be affected by the sale, and Thomas does not expect any additional fixed costs. Expected increase/(decrease) in operating income Thomas should the offer because operating income will 8. Does your answer change if Thomas Company is operating at capacity? Why or why not? (Enter an expected decre Revenue at capacity sale price Less: Revenue at regular sale price Expected increase/(decrease) in revenue Print Done