F H Question 2 U Balance Corporation manufactures balance bikes for toddlers. The company currently sells the bikes for $60.00. A customer has approached the company and would like to make a special order for 1,000 bikes. Due to the large order, the client would like a discount and offered to pay $45.00 per bike. U Balance is trying to determine if they should accept the special order. UBalance currently sells 20,000 bikes per year and has the ability to produce 25,000 bikes. U Balance has provided information on its normal costs to produce the bikes as follows: Per Unit $15 Direct Materials Direct Labour Manufacturing Overhead Unit product cost The variable portion of the manufacturing overhead is $5 per unit. The order would have no effect on the company's total fixed manufacturing overhead costs and would not affect regular sales. Required: a. Calculate the incremental operating income if the company accepts the special order. b. Should the company accept the special order? Auction 2 Question 3 Assessment Criteria +