I Love Exams, Inc. is approached by an international customer to fulfill a one-time-only special order for a product like one offered to domestic customers. The company has excess capacity. The following per-unit data apply to sales of regular customers:

Sales Price $ 35 Variable costs: Direct materials $ 8 Direct labor $ 2 Manufacturing overhead $ 5 Marketing costs $ 7 Fixed costs: Manufacturing overhead $ 4 Marketing costs $ 3 Total costs $ 29

Assuming variable marketing costs would be avoided and an additional $5 per unit shipping cost on the special order, what is the minimum acceptable price per unit?

If variable marketing costs are avoidable and there is an additional $5 per unit shipping charge. What is the change in operating profits if the special order for 5,000 units is accepted for $25.00 a unit? Be sure to state if the change is an increase or decrease.