Cozy Products manufactures t$-$shirts. It has the following costs when its production level is $115,000$ units $($t$-$shirts$)$:

View the costs.

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

Complete the following incremental analysis to determine the impact on Cozy's operating income if it accepts this special order. $($Round all per unit amounts to the nearest cent, $$.$ XX $,$ and all other amounts to the nearest whole dollar. Enter a $"0"$ for any zero balances. Use parentheses or a minus sign to indicate a decrease in contribution margin and$/$or operating income from the special order.$)q,$

Revenue from special order

Less variable expense associated with the order:

Direct materials

Direct labor

Variable manufacturing overhead

Contribution margin $q,$

$$

Less: Additional fixed expenses associated with the order $$

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

$$

$$

$$

$$

$q,$

$$

$$

$$

$\backslash$table$[[$Costs$],[,$Total costs for $115,000$ units$],[$Direct materials,$$,356,500],[$Direct labor,,$63,250],[$Variable manufacturing overhead,,$80,500],[$Fixed manufacturing overhead,$\frac{?}{\text{b}\text{a}\text{r}}(3),140,000],[\backslash$table$[[$Total manufacturing costs$]],$$$,\backslash$table$[[640,250]]]]$

Additional information

The company's relevant range extends to $131,500$ units. Cozy has received a special order for $11,500t-$shirts at a special price of $$69,000$ for the entire order. The special order $t-$shirt would use a fabric that is less expensive than the standard fabric used by Cozy, which would allow Cozy to save $$0\mathrm{.}60$ per $t-$shirt in direct materials when manufacturing this special order. Cozy has the excess capacity to manufacture this special order. Its total fixed costs will not be impacted by the special order.

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