BCGelco Manufacturing produces and sells of filters for $3.35 each, A retailer has offered to purchase 25,000 oil filters for $1.40 per filter. Of the total manufacturing cost per fiber of $2.15, $1.30 is the variable manufacturing cost per filter. For this special order, BCGelco would have to buy a special stamping machine that costs $8,500 to mark the customer's logo on the special-order ol fiters. The machine would be scrapped when the special order is complete. This special order would use manufacturing capacity that would otherwise be idle. No variable nonmanufacturing costs would be incurred by the special order. Regular sales would not be affected by the special order. Would you recommend that BCGelco accept the special order under these conditions? CED Complete the following incremental analysis to help you make your recommendation. (Use parentheses or a minus sign to indicate a decrease in operating Income from the special order) Total Order Incremental Analysis of Special Sales Order Decision Per Unit (25,000 units) Revenue from special order 1.40 34000 Less variable expense associated with the order Vanable manufacturing costs Contribution margin Less Additional fixed expenses associated with the order Increase (decrease) in operating income from the special order 125 25000 0.45 9000 8000 1000 Help me solve this Video Get more help Clear all Check answer