Blended Products manufactures t$-$shirts. It has the following costs when its production level is $70,000$ units $($t$-$shirts$)$: $($Click the icon to view the costs.$)$

$($i$.)($Click the icon to view additional information.$)$

What will happen to Blended's operating income if it accepts this special order?

contribution margin and$/$or operating income from the special order.$)$

Incremental Analysis of Special Sales Order Decision

Per Unit

Total Order

Incremental Analysis of Special Sales Order Decision

Revenue from special order

$(7,000$ units$)(7,000$ units$)$

$$

Less variable expense associated with the order:

Direct materials

Direct labor

Variable manufacturing overhead

Contribution margin

Less: Additional fixed expenses associated with the order

Increase $($decrease$)$ in operating income from the special order

Blended $$ accept the special sales order because it will operating income.