does not currently operate. Abbott will market the units in its country under its own brand name, so the special order is not expected to have any effect on Barry's regular sales.

Read the requirements.

Requirement $1.$ How would accepting the special order impact Barry's operating income? Should Barry accept the special order?

contribution margin and$/$or operating income from the special order.$)$

Incremental Analysis $of$ Special Sales Order Decision $\{\begin{array}{ccc}\text{:}[& \text{T}\text{o}\text{t}\text{a}\text{l}\text{O}\text{r}\text{d}\text{e}\text{r}(5,000],[\text{u}\text{n}\text{i}\text{t}\text{s})& ]\end{array}$

Revenue from special order

Less expenses associated with the order:

Less: Variable manufacturing cost

Contribution margin

Less: Additional fixed expenses associated with the order

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

Requirements

How would accepting the special order impact Barry's operating income?

Should Barry accept the special order?

How would your analysis change if the special order sales price were to be

$$45\mathrm{.}00$ per unit and Barry would have to pay an attorney a fee of $$14,000$ to

make sure it is complying with export laws and regulations relating to the

special order?