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HASFFurniture Inc. manufactures a moderate-price set of lawn furniture (a table and four chairs) that it sells for $225. It currently manufactures and sells 6,000

HASFFurniture Inc. manufactures a moderate-price set of lawn furniture (a table and four chairs) that it sells for $225. It currently manufactures and sells 6,000 sets per year. The manufacturing costs 155 (include $85 for materials and $45 for labor per set). The overhead entirely of fixed costs. Modern furniture's is considering a special purchase offer from a large retail firm, which has offered to buy 600 sets per year for three years at a price of $150 per set. Modern furniture has the available plant capacity to produce the order and expects no other orders or profitable alternative uses of the plant capacity.

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Amount of profit that will increaes after accepting the special order

Revenue increase after accepting the order

Cost increase after accepting the order

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