Special Orders nae : Maria’s Tool & Die Shop makes gears for transmissions. Data from the forecasted income statement for the year before any special orders are as follows:

Fixed costs included in this forecasted income statement are $7,000,000 in manufacturing costs and $500,000 in marketing costs. These costs are not affected by a special order offering to buy 50,000 gears for $35 each. Maria’s has enough idle capacity to process this order. Variable marketing costs will not be affected by the order.
Required What impact would accepting the special order have on operating profit?

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Amount Per Unit Sales revenue $20,000,000 Manufacturing costs 16,000,000 $50.00 40.00 Gross profit 4,000,000 10.00 Marketing costs. 1,500,000 3.75 Operating profit 2,500,000 6.25