Question: Product variable cost is 11 per unit and fixed costs are 1.80 per unit(324,000 total fixed with 180,000 in production. Total production cost is 12.80

Product variable cost is 11 per unit and fixed costs are 1.80 per unit(324,000 total fixed with 180,000 in production. Total production cost is 12.80 per unit. R company offered by H company to purchase 4,800 units for 7.50 each. No other costs or extra fixed costs expected. If you can tell why the operating income will increase or decrease and by how much alongside the question, that would be great

7. If Rogers Company has excess capacity, should it accept the offer from Hayden? Show your calculations. (Use a Expected increase in revenue Expected increase in variable manufacturing costs Expected increase (decrease) in operating income Rogers should reject the offer because operating income will 8. Does your answer change if Rogers Company is operating at capacity? Why or why not? (Enter an expected decrea Revenue at capacity sale price Less: Revenue at regular sale price Expected increase/(decrease) in revenue Rogers should the offer if operating at capacity because operating income will

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