vel with variable manufacturing costs of $18 Question 2 (6 marks) Bloor's Shovel Company produces a standard shovel with variable man per unit. The selling price of the standard shovel is $25 per u semng price of the standard shovel is S25 per unit. The fixed manufacturing overhead cost is $67,000. A normal production run includes 100,000 units. Bloors Company has discovered an additional process to change the standard sho itional process to change the standard shovel into a deluxe shovel. Additional costs are estimated at $4 per unit. The deluxe shovel would s Additional fixed manufacturing overhead cast of $23.000 would be incurred if the deluxe shovei is produced. There would be no change in the number of units produced. REQUIRED: 1. What is the operating income if Bloor's Shovel Company continue to produce and sell the standard shovel? (2 marks) 2. What is the operating income if Bloor's Shovel Company change the standard shovel into a deluxe shovel? (2 marks) 3. What is the difference in operating income between the two alternatives? (1 marks) 4. Should Bloor's Shovel Company continue to produce and sell the standard shovel or change the standard shovel into a deluxe shovel? (1 marks)