Carney Corporation has received a request for a special order of 4,000 units of product F65 for $27.60 each. Product F65's unit product cost is $25.80, determined as follows:

Direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like modifications made to product F65 that would increase the variable costs by $4.00 per unit and that would require an investment of $20,000 in special molds that would have no salvage value.

This special order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order.

Required:

1. Prepare an incremental analysis for the special order.

2. Should Carney Company accept the special order?

Oroton Ture. Po Camey Corporation has received a request for a special order of 4 $27.60 each. Product F634 unit product cost is $25.80, determined mler Duect labor Variable manufacturing overhead Fixed manufacturing overhead Une product Cou $2.40 7 70 680 8.00 Direct labor is a variable cost. The special order would have no effect manufacturing overhead costs. The customer would like modifications would increase the variable costs by $4.00 per urnt and that would requ $20,000 in special molds that would have no salvage value. This special order would have no effect on the company's other sales. T spare capacity for producing the special order