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ABC Company manufactures air conditioner and has capacity to produce 5,500 units The budgeted costs for production of 5,000 units are as follows: 400,000 $

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ABC Company manufactures air conditioner and has capacity to produce 5,500 units The budgeted costs for production of 5,000 units are as follows: 400,000 $ Direct materials 220,000 100,000 269,000 $ hours 10,000 Direct labor $ Variable costs $ Fixed costs The company receives an order from a customer in a country in which it has not done business before. Information pertaining to the order is as follows: $ 160 Sale price per unit Number of units 400 ordered Required: Should ABC Company accept the special order? By how much will operating income increase or decrease if the order is accepted

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