Famous Footwear, the worldwide leader in sneakers, manufactures sneakers and sells them for 9$ a pair. Variable manufacturing cost is 5$ a pair (this includes labor, raw materials and variable overhead) and fixed manufacturing cost is $150,000. Famous Footwear has enough idle capacity available to accept a one time special order of 20,000 pairs of sneakers at $7 a pair. Famous Footwear will not incur any additional marketing or other fixed costs as part of this special order.

A.) Should Famous Footwear take the order?

B.) Why or why not?

C.) What is the impact on operating income if they were to take this order?