Alpine Luggage has a capacity to produce 370,000 sultcases per year. The company Is currently producing and selling 290,000 units per year at a selling price of $403 per case. The cost of producing and selling one case follows: Variable manufacturing costs Fixed manufacturing costs Variable selling and administrative costs Fixed selling and administrative costs $ 164 40 75 18 Total costs $297 The company has recelved a speclal order for 30,000 sultcases at a price of $249 per case. It will not have to pay any sales commisslon on the speclal order, so the varlable selling and administrative costs would be only $49 per suitcase. The speclal order would have no effect on total fixed costs. The company has rejected the offer based on the following computations: Selling price per case Variable manufacturing costs Fixed manufacturing costs $ 249 164 40 Variable selling and administrative costs Fixed selling and administrative costs 49 18 Net profit (loss) per case $ (22) Requlred: a. What Is the Impact on profit for the year If Alplne accepts the speclal order? (Enter your answers In thousends of dlollars. Select optlon hlgher or lower, keeplng Status Quo as the base

Alpine Luggage has a capacity to produce 370,000 sultcases per year. The company is currently producing and selling 290,000 units per year at a selling price of $403 per case. The cost of producing and selling one case follows: Variable manufacturing costs Fixed manufacturing costs Variable selling and administrative costs Fixed selling and administrative costs Total costs $164 40 75 18 $ 297 The company has received a special order for 30,000 suitcases at a price of $249 per case. It will not have to pay any sales commission on the special order, so the variable selling and administrative costs would be only $49 per suitcase. The special order would have no effect on total fixed costs. The company has rejected the offer based on the following computations Selling price per case Variable manufacturing costs Fixed manufacturing costs Variable selling and administrative costs Fixed selling and administrative costs Net profit (los) per case 5 249 164 40 49 18 $ (22) Required: .. What is the impact on profit for the year if Alpine accepts the special order? (Enter your answers in thousands of collars. Select option "higher" or "lower", keeping Status Quo as the bese. Select "none" if there is no effect.) All events and costs in 1000 St Our Alternative 290. Un 230 UDD De sales revenue Variable costs