Differential costs. Assume Sketcher Shoes has a plant capacity that can produce 3,000 units per week (each unit is a pair of shoes). Its predicted operations for the week follow:

Should Sketcher accept a special order for 200 units at a selling price of $25 each?
Assume these units are subject to half the usual sales commission rate per unit, and assume no effect on regular sales at regular prices. How will the decision affect the company"s operating profit?
PROBLEMS

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Sales (2,500 units at $30 each). Manufacturing Costs Variable.. Fixed. Marketing and Administrative Costs Variable (sales commissions) Fixed. $75.000 $15 per Unit $10.000 $3 per Unit $1.500