Jerston Company has an annual plant capacity of 4,600 units. Data concerning this product are given below:

Annual sales at regular selling prices			4,500 units
Manufacturing costs:
Variable		$	48 per unit
Fixed (annual)		$	78,500
Selling and administrative expenses:
Variable (sales commissions)		$	12 per unit
Fixed (annual)		$	16,500

The company has received a special order for 100 units at a selling price of $115 each. Regular sales would not be affected, and sales commissions on the 100 units would be reduced by one-third. This special order would have no impact on total fixed costs.

Required:
a.	Determine the net advantage (disadvantage) for the special order. (Input the amount as a positive value.)

(Click to select)Net disadvantageNet advantage

$

b.

The company should accept the special order.

	Yes
	No