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Wiams Company makes a product that regularly sells for $15.00 personit Click the toon to view addition information 7. William Company has excen capacity, should it accept the offer from Holden? Show your calotations 3. Does your answer change Willams Company is operating at capacity Wy or why not? 7. Wome Company has com capacity, whould n accept the other hom Holden Show your calculation (Use a minu won of parents to Owoh perate in urma) Expected arease in revenue Expected increase in variable manufacturing costa Expected increase/decrease in operating income Wiliams Company makes a product that regularly sells for $15.00 per unit. (Click the icon to view additional information.) 7. If Williams Company has excess capacity, should it accept the offer from Holden? Show your calculations. 8. Does your answer change if Williams Company is operating at capacity? Why or why not? Williams should the offer because operating income will 8. Does your answer change if Williams Company is operating at capacity? Why or why not? (Enter an expected decrease in revence with a minus sign or parentheses) Revenue at capacity sale price Williams Company makes a product that regularly sells for $15.00 per unit. (Click the icon to view additional information.) 7. If Williams Company has excess capacity, should it accept the offer from Holden? Show your calculations, 8. Does your answer change if Williams Company is operating at capacity? Why or why not? Revenue at capacity sale price Less: Revenue at regular sale price Expected increase/(decrease) in revenue Williams should the offer if operating at capacity because operating income will sh The product has variable manufacturing costs of $9.50 per unit and fixed manufacturing costs of $2.30 per unit (based on $253,000 total fixed costs at current production of 110,000 units). Therefore, total production cost is $11.80 per unit. Williams Company receives an offer from Holden Company to purchase 4,500 units for $10.00 each. Selling and administrative costs and future sales will not be affected by the sale, and Williams does not expect any additional fixed costs. ing

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