Grapevine Confections details:

Production: 40,000 cases/year

Variable production costs: $22/case

Fixed production costs: $9/case

Variable selling costs: $7/case

Fixed selling and administrative costs: $4/case

Total costs: $42/case

Details:

Marks up prices 35% over full costs

Surplus capacity: 12,000 cases

Offer: 10,000 cases at $45/case

Additional costs: $2/case

Requirement: Prepare a balance sheet showing the impact of accepting this order.