APPLY THE CONCEPTS: Calculate differential costs in a special order decision

Blanche Corporation currently produces and sells 15,000 soccer balls per month at a price of $15. All sales are made in the United States. Its factory is capable of producing 20,000 soccer balls per month.

A European retail store has recently contacted Blanche Corporation and offered to buy 4,000 soccer balls at $8 each. If the offer is accepted, the sale is not expected to have any effect on the current level of sales or the current selling price in the United States.