annual plant capacity of 70,000 units. current production is 55000 units per year. the variable cost per unit is 30.00 and the fixed cost per unit is 4.10. the normal selling product is 45.00 per unit. special order for 10,000 units of the product at a special sales price if 25.00 per unit.

Requirements 1. How would accepting the special order impact Perreth's operating income? Should Perreth accept the special order? How would your analysis change if the special order sales price were to be $40.00 per unit and Perreth would have to pay an attorney a fee of $15,000 to make sure it is complying with export laws and regulations relating to the special order? 2. Read the requirements Total Order Incremental Analysis of Special Sales Order Decision (10,000 units) Revenue from special order Less expenses associated with the order Variable manufacturing cost Contribution margin Less: Additional fixed expenses associated with the order Increase (decrease) in operating income from the special order Perrethaccept the special sales order because it wiloperating $15,000 to make sure it is complying with export laws sign to indicate a decrease in contribution margin and/or operating income from the special order.) would your analysis change if the special order sales price were to be $40.00 per unit and ulations relating to the special order? (Enter a "o Total Order Incremental Analysis of Special Sales Order Decision (10,000 units) Revenue from special order Less expenses associated with the order: Variable manufacturing cost Contribution margin Less: Additional fixed expenses associated with the order Increase (decrease) in operating income from the special order [ operating income accept the special sales order because it will