AJ & Company manufactures tennis rackets. Their newest product sells for $350. The company produces and sells about 15,000 units per year. Cost data follows:

Variable manufacturing	$190	per unit
Variable selling and administrative	$80	per unit
Fixed manufacturing	$250,000	per year
Fixed selling and administrative	$52,000	per year

A potential deal has come up for a one-time sale of 100 units at a special price of $290 per unit.

The sale will not negatively impact the company's regular sales activities.

It will require the normal variable manufacturing costs and variable selling and administrative costs.

There is plenty of excess capacity and the deal will not impact fixed costs.

Create a DIFFERENTIAL ANALYSIS of a Special Pricing Decision showing the expected increase or decrease in operating income if this order is accepted.

Based on your analysis, would you accept or reject the order? Why?