Current Attempt in Progress The Curry Kitchen has gained incredible, edible appeal throughout the region for providing the most phenomenal chicken curry around. The best part is that consumers can order a meal kit for four, have it delivered to their home, and easily prepare this tasty meal for their family. This past year, the company reported operating income of $50,000 on sales of 20,000 meal kits. Last year's Income statement is as follows. Revenues Variable expenses Manufacturing SG&A Total variable expenses Contribution margin Fixed expenses Manufacturing SG&A Total fixed expenses Operating income $800,000 Per Unit $40.00 $300,000 15.00 150,000 7.50 450,000 22.50 350,000 $17.50 120,000 180,000 300,000 $50,000 Managers would love to increase sales volume as well as operating income next year, but they are unsure where to focus their efforts in order to achieve these goals. The Curry Kitchen is considering the following two options. 1 Taking on a special order from one of its key repeat customers to prepare 500 meal kits of curry chicken, in a 2- serving size, to give as a company reward to employees. With a few adjustments, The Curry Kitchen has capacity to take on this special order, with the following effects . . Variable SG&A expenses would decrease to $2.50 per unit for this special order. Variable manufacturing costs would decrease slightly due to the different packaging requirements: these costs would run $10/unit for the special order. 2 . The customer has offered to pay $9,000 for the entire order. Adding a 2-serving-size meal kit to its regular offerings. The Curry Kitchen believes it could sell 2,000 of these smaller meal kits, its current capacity could accommodate the additional production volume. Additional details The same manufacturing cost adjustment as described in Option 1 would be in place. . The variable SG&A expenses would remain the same as last year, The price point for this new product is still under consideration.