2. Suppose the company is already operating at capacity. Should the order be accepted or rejected?

An order has been received from an overseas customer for 2,000 units to be delivered this month at a special discounted price. This order would have no effect on the company's normal sales and would not change the total amount of the company's fixed costs. The variable selling and administrative expense would be $0.70 less per unit on this order than on normal sales. Suppose there is idle capacity to produce the units required by the overseas customer and the special discounted price on the special order is $51.20 per unit. By how much would this special-order increase (decrease) the company's net operating income for the month? An order has been received from an overseas customer for 2,000 units to be delivered this month at a special discounted price. This order would have no effect on the company's normal sales and would not change the total amount of the company's fixed costs. The variable selling and administrative expense would be $0.70 less per unit on this order than on normal sales. Suppose there is idle capacity to produce the units required by the overseas customer and the special discounted price on the special order is $51.20 per unit. By how much would this special-order increase (decrease) the company's net operating income for the month