Peters Company makes a product that regularly sells for $ 13.00 per unit

Please answer 7 and 8 Thank you

The product has variable manufacturing costs of $10.50 per unit and fixed manufacturing costs of $1.60 per unit (based on $208,000 total fixed costs at current production of 130,000 units). Therefore, total production cost is $12.10 per unit. Peters Company receives an offer from Hayden Company to purchase 4,800 units for $7.00 each. Selling and administrative costs and future sales will not be affected by the sale, and Peters does not expect any additional fixed costs. 7. If Peters Company has excess capacity, should it accept the offer from Hayden? Show your calculations. (Use a minus sign or parentheses to show a decrease in operating income.) Expected increase in revenue Expected increase in variable manufacturing costs Expected increase/(decrease) in operating income Peters should the offer because operating income will O Donvur oneworbanaif Dotare comandanarotinconcit o r what/otor on ovortod docrooco in rovOnu with minucian ornaronthocor) 8. Does your answer change if Peters Company is operating at capacity? Why or why not? (Enter an expected decrease in revenue with a minus sign or parentheses.) Revenue at capacity sale price Less: Revenue at regular sale price Expected increase/(decrease) in revenue Peters should the offer if operating at capacity because operating income will