Brief Exercise 8-17 Structuring a Special-Order Problem Harrison Ford Company has been approached by a new customer with an offer to 10,000 units of its model IJ5 at a price of $5 each. The new customer is geographically rated from the company's other customers, and existing sales would not be affected. Harrison normally produces 75,000 units of IJ5 per year but only plans to produce and sell 60,000 coming year. The normal sales price is $12 per unit. Unit cost information for the normal of activity is as follows: purchase sepa Direct materials Direct labor Variable overhead $1.75 2.50 1.50 Fixed overhead 3.25 $9.00 Total avITOO lgm Fixed overhead will not be affected by whether or not the special order is accepted. Required: 1 What are the relevant costs and benefits of the two alternatives (accept or reject the special order) 2 By how muchwill operating income increase or decrease if the order is accepted? osaccTavE OBJECTIVE