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Data table Total costs for 110,000 units Direct materials $ 363,000 38,500 Direct labor Variable manufacturing overhead Fixed manufacturing overhead 110,000 140,000 $ 651,500 Total

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Data table Total costs for 110,000 units Direct materials $ 363,000 38,500 Direct labor Variable manufacturing overhead Fixed manufacturing overhead 110,000 140,000 $ 651,500 Total manufacturing costs Luxury Products manufactures t-shirts. It has the following costs when its production level is 110,000 units (t-shirts): (Click the icon to view the costs.) (Click the icon to view additional information.) What will happen to Luxury's operating income if it accepts this special order? Complete the following incremental analysis to determine the impact on Luxury's operating income if it accepts this special order. (Rou "O" for any zero balances. Use parentheses or a minus sign to indicate a decrease in contribution margin and/or operating income fron Total Order Incremental Analysis of Special Sales Order Decision Per Unit (11,000 units) Revenue from special order Less variable expense associated with the order: Direct materials Direct labor Variable manufacturing overhead Contribution margin Less: Additional fixed expenses associated with the order Increase (decrease) in operating income from the special order Luxury accept the special sales order because it will operating income. More info The company's relevant range extends to 126,000 units. Luxury has received a special order for 11,000 t-shirts at a special price of $63,250 for the entire order. The special order t-shirt would use a fabric that is less expensive than the standard fabric used by Luxury, which would allow Luxury to save $0.45 per t-shirt in direct materials when manufacturing this special order. Luxury 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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