$960,00o (16.000.'ni? @ $60) K--vermes ule coStS: Manufacturing (16,000 units @ $24) Selling (16,000 units $8) $384,000 128,000 512,000 $448,000 Contribution margin Fixed costs: Manufacturing Selling and administrative Operating income $160,000 120,000 280,000 $168,000 A foreign wholesaler wants to buy 1,000 units at a price of $40 per unit. Scott Company will incur both variable manufacturing and variable selling costs on the special order. All fixed costs would remain withh runge Required a. Determine the effect on operating income if the company produces the special order b. Determine the effect on oper ating income if the customer had wanted a special order of 3,000 units and the company produced the special order , indicate whether Scott Company should accept or reject the 1,000- Based on quantitative factors only unit special order and whether Scott Company should accept or reject the 3,000-unit specia identify an important qualitative item that Scotu Company l order. Then should consider in making their final decision