Thomas Company makes a product that regularly sells for $12.50 per unit. (Click the icon to view additional information.) More info 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 at .. decrease by $2,500. 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. 7. If Thomas Company has excess capacity, should it accept the decrease by $10,000. culations. (Use a m increase by $2,500 Expected increase in revenue Expected increase in variable manufacturing costs Expected increasel(decrease) in operating income increase by $10,000. Print Done 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 decrel Revenue at capacity sale price Less: Revenue at regular sale price Expected increasel(decrease) in revenue Thomas Company makes a product that regularly sells for $12.50 per unit. (Click the icon to view additional information.) More info 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 at capacity? Why or why not? GO 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 7. If Thomas Company has excess capacity, should it accept the offer from Wesley? Show your calculations. (Use a m Expected increase in revenue Expected increase in variable manufacturing costs Expected increasel(decrease) in operating income Print Done Thomas should the offer because operating income will 8. Does your ans mas Company is operating at capacity? Why or why not? (Enter an expected decrel Revenue at cap accept Less: Revenue ice Expected incre reject revenue Thomas Company makes a product that regularly sells for $12.50 per unit (Click the icon to view additional information.) More info 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 at capacity? Why or why not? 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 7. If Thomas Company has excess capacity, should it accept the offer from Wesley? Show your calculations. (Use a minus sign or parenthe costs Expected increase in revenue Expected increase in variable manufacturing costs Expected increasel(decrease) in operating income Print Done Thomas should the offer because operating income will 8. Does your ans mas Company is operating at capacity? Why or why not? (Enter an expected decrease in revenue with Revenue at cap accept Less: Revenue ice Expected incre reject revenue 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 at capacity? Why or why not? . Expected increase in revenue Expected increase in variable manufacturing costs Expected increasel(decrease) in operating income Thomas should the offer because operating income will decrease by $17,500 8. Does your answer change if Thomas Company is operating at capacity? Why or why n in revenue with a minus sign or parentheses.) decrease by $2,500 increase by $17,500. Revenue at capacity sale price Less: Revenue at regular sale price Expected increasel(decrease) in revenue increase by $2,500. Thomas should the offer if operating at capacity because operating income will