Use your answer to #2, to create the 'status quo'. McCarthy nylon company comes up with the following offer 'hey, if you buy OUR nylon at $20/yard, you can advertise this (at $1,000 per year) AND be able to sell your nylon suits for $250 (rather than $200). Do you take the offer? Why or why not? Question#2: 1.Assume that there IS a capacity issue, in that the sewing machine can ONLY work 3600 (about 10 hours a day) hours (or it will break). Also, assume that annual demand for nylon suits is 800 and annual demand for cotton is also 800. What is the optimal product mix in terms of making/selling nylon and cotton suits?SHOW YOUR WORK. Given info: Nylon Jogging Suit: 2yds/suit at $10/yd = direct materials; 5dlh/suit at $10/dlh = direct labor; 2mh/suit at $10/mh = VOH (utilities/grease); 5dlh/suit at $10/dlh = VOH (indirect labor). Cotton Jogging Suit: 3yds/suit at $20/yd = direct materials; 4dlh/suit at $5/dlh = direct labor; 4mh/suit at $10/mh = VOH (grease/utilities); 4dlh/suit at $10/dlh = VOH (indirect labor).