Exercise 4-37 (Algo) Special Orders (LO 4-1, 2) Alpine Luggage has a capacity to produce 410,000 suitcases per year. The company is currently producing and selling 330,000 units per year at a selling price of $404 per case. The cost of producing and selling one case follows: Variable manufacturing costs Fixed manufacturing costs Variable selling and administrative costs Fixed selling and administrative costs Total costs $157 39 83 21 5300 ces The company has received a special order for 30,000 suitcases at a price of $252 per case. It will not have to pay any sales commission on the special order, so the variable selling and administrative costs would be only $51 per suitcase. The special order would have no effect on total fixed costs. The company has rejected the offer based on the following computations: Selling price per case Variable manufacturing costs Fixed manufacturing costs Variable selling and administrative costs Fixed selling and administrative costs Met profit (loss) per case Required: $252 157 39 51 21 $1163 a. What is the impact on profit for the year if Alpine accepts the special order? (Enter your answers in thousands of dollars. Select option "higher" or "lower", keeping Status Quo as the base. Select "none" if there is no effect.) (All revenues and costs in 1000) Sales revenue Variable costs Manufacturing Selling and administrative Contribution margin Fixed costs Operating prof Status Quo 330,000 Units Alternative 360,000 Units Difference $ 133.320 b. Do you agree with the decision to reject the special order? O Yes O No