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JC Bico Manufacturing produces and sells oil filters for $3.35 each. A retailer has offered to purchase 20,000 oil filters for $1.70 per liter of

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JC Bico Manufacturing produces and sells oil filters for $3.35 each. A retailer has offered to purchase 20,000 oil filters for $1.70 per liter of the total manufacturing cost per filter of $2.15, $1.25 is the variable manufacturing cost per Niter. For this special order, JCBilco would have to buy a special stamping machine that costs $8,000 to mark the customer's logo on the special-order oil filters. The machine would be scrapped when the special order is complete. This special order would use manufacturing capacity that would otherwise be idle. No variable nonmanufacturing costs would be incurred by the special order. Regular sales would not be affected by the special order Would you recommend that JCBico act the special order under these conditions? Total Order (20,000 units) Per Unit Incremental Analysis of Special Sales Order Decision Revenue from special order Less variable expense associated with the order: Contribution margin UUUUUULTig Increase (decrease) in operating income from the special order JCBilco accept the special sales order because it will operating income

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