Land O'Lakes has received a special order for $35,000$ units of block cheddar at a special price of

$$4\mathrm{.}25.$

Assume Land O'Lakes would need to temporarily rent additional space to fulfill the order, at a

cost of $$75,000.$ Land O$\text{'}$ Lakes other production and sales will otherwise be unaffected.

If Land O'Lakes accepts the order, what effect will the order have on the company's net

income? Should they accept the special order?

What would be the lowest sales price needed to make this special order acceptable?

$*$ Note: All manufacturing overhead are fixed costs

Land O'Lakes has received a special order for $35,000$ units of block cheddar at a special price of $\backslash (\backslash$$ $4\mathrm{.}25\backslash ).$

Assume Land O'Lakes would need to temporarily rent additional space to fulfill the order, at a cost of $\backslash (\backslash$$ $75,000\backslash ).$ Land $\backslash ($ O$^\{\backslash$prime$\}\backslash )$ Lakes other production and sales will otherwise be unaffected. If Land O'Lakes accepts the order, what effect will the order have on the company's net income? Should they accept the special order?

What would be the lowest sales price needed to make this special order acceptable?