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Blue Spruce Manufacturing has an annual capacity of 85,600 units per year. Currently, the company is making and selling 79,100 units a year. The normal
Blue Spruce Manufacturing has an annual capacity of 85,600 units per year. Currently, the company is making and selling 79,100 units a year. The normal sales price is $121 per unit, variable costs are $91 per unit, and total fixed expenses are $2,000,000. An out-of-state distributor has offered to buy 12,100 units at $106 per unit. Blue Spruce's cost structure should not change as a result of this special order. By how much will Blue Spruce's income change if the company accepts this order? Blue Spruce's operating income will V by $ if it accepts the special order.
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