Following is the income statement of Pelle Company, a manufacturer of men's blue jeans: (Click the icon to view the income statement.) Pelle had manufactured 0.8 million pairs of jeans, which had been sold to various clothing wholesalers and department stores. At the start of 20X0, the president, Cinthia Suarez, died unexpectedly. Her son, Chuck, became the new president. Chuck had worked for 15 years in the marketing phases of the business. He knew very little about accounting and manufacturing, which were his mother's strengths. Chuck has several questions, including inquiries regarding the pricing of special orders. Read the requirements 128,000 $ 6.40 Operating income Was Chuck's analysis of the impact on operating income correct? No, Chuck was not correct in his analysis of the special order's impact on operating income Requirement 4. After receiving the explanations offered in number 2 and 3, Chuck said, "Forget that I had the New Navy order. I had an even bigger order from Posen. It was for 50,000 units and would have filled the plant completely. I told my mother I'd settle for no commission. There would have been no selling and administrative costs whatsoever because Posen would pay for the shipping and would not get any advertising allowances. Posen offered $33.00 per unit. Our fixed manufacturing costs would have been spread over 0.85 million instead of 0.8 million units. Wouldn't it have been advantageous to accept the offer? Our old fixed manufacturing costs were $6.00 per unit. The added volume would reduce that cost more than our loss on our variable costs per unit. Am I correct? What would have been the impact on total operating income if we had accepted the order?" Complete the table below to show the impact on total operating income if the company had accepted the order and to determine whether Chuck was correct. (Complete all answer boxes. Enter per unit amounts to the nearest cent. Use a minus sign or parentheses for a decrease in contribution margin and/or a decrease in operating income as a result of the special order.) - X Effect of Special Order 50,000 units Data Table Total Per Unit Sales Less variable expenses: Manufacturing Pelle Company Income Statement for the Year Ended December 31, 20X0 Total Per Unit Selling and administrative Sales $ 60.00 48,000,000 $ 32,800,000 41.00 Total variable expenses Contribution margin Less fixed expenses Manufacturing Selling and administrative Less: Cost of goods sold Gross margin Less selling and administrative expenses $ 15,200,000 $ 9,200,000 19.00 11.50 $ 6,000,000 $ 7.50 Operating income Total fixed expenses Print Done Operating income Enter any number in the edit fields and then click Check Answer. ? part remaining Clear All Check