Cost Accounting for Managerial Planning, Decision Making and Control.pdf (page 387 of 552) Q Search 13-20 Special Order Decision Marathon Manufacturing, which produces running shoes, has enough idle capacity available to accept a special order of 1,000 pairs of shoes at $24 per pair. The following data has been obtained from their budget for the current year. Per Unit Total Sales........... $37.50 $3,750,000 Variable manufacturing costs............... (18.75) (1,875,000) Fixed manufacturing costs..................... (525,000) Gross profit............................... 13.50 1,350,000 Variable selling expenses.... ..... (5.40) (540,000) Fixed selling expenses....... .... (4.35) (435,000) Operating income... ...... $ 3.75 $375,000 No additional selling expenses will be incurred due to the special order. Required: If the special order is accepted, what will be the effect on operating income? 405