Assume the special order is accepted

QUESTION 9 10 points Save Answer Duoco estimates the following cost information for its sole product, The Treo, in the upcoming year (see table). Duoco has the capacity to manufacture 35,000 units annually. Manufacturing Costs: Variable costs: $6.25 per unit manufactured Fixed costs: $110,000 annually Operating Expenses: Variable Selling and Administrative costs: $3.75 per unit sold Fixed Selling and Administrative costs: $90,000 annually Duoco expects to sell 25,000 units next year at the normal price of $22 each. A company has approached Duoco about a special order of 8190 units at a price of $15 each. Determine the increase in profit if the special order is accepted. Assume the special order will not impact normal sales and that all normal variable costs will be incurred. Duoco does not anticipate having to expand manufacturing capacity to fill the order, but does estimate that the cost of complying with the buyer's packaging and labelling requirements will cost $12,000 plus $1.50 per unit. (Round to the nearest $1.00) QUESTION 10