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#1 Rowe Tool and Die (RTD) produces metal fittings as a suppller to various manufacturing firms in the area. The following is the forecasted income

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Rowe Tool and Die (RTD) produces metal fittings as a suppller to various manufacturing firms in the area. The following is the forecasted income statement for the next quarter, which is the typical planning horizon used at RTD. RTD expects to sell 59,000 units duing the quarter. RTD carries no inventorles. Fixed costs included in this income statement are $383,500 for depreclation on plant and machinery and miscellaneous factory operations and $101,500 for administrative costs. RTD has recelved a request for 10,000 fittings to be produced in the next quarter from Endicott Manufacturing. Endicott has never purchased from RTD, although they have been a local company for many yearts Endicott has offered to pay $21.40 per unit. RTD can easily produce the 10,000 units with its existing capacity. Production of the 10,000 units will incur all varlable manufacturing costs but no fixed manufacturing costs. No administrative costs will be incurred because of the order. Required: a. What impact would accepting this special order have on operating profit? b. Should RTD accept the order? Answer is not complete. Complete this question by entering your answers in the tabs below. What impact would accepting this special order have on operating profit? (Enter your answers in thousands rounded to 1 decimal place. (i.e., 5,400,400 should be entered as 5,400.4). Select option "higher" or "lower", keeping Status Quo as the base. Select "none" if there is no effect.)

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