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Layla Company manufactures one product at a normal activity level of 70,000 units per month. The following is the cost of producing one unit of

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Layla Company manufactures one product at a normal activity level of 70,000 units per month. The following is the cost of producing one unit of this product at that activity level per month: The normal selling price of the product is $28.35 per unit. An order has been received from an overseas customer for 1,000 units to be delivered this month at a special discounted price. This order the company's normal sales demand and would not change the total amount of the company's fixed costs. The variable selling and administrative expense would bess per unit on this order than on normal sales. Required: a. Assume there is ample idle capacity to produce the units required by the overseas customer and the special discounted price on the special order is $25.60 per unit. By how much would this special order increase (decrease) the company's net operating income for the month? show support b. Assume the company is already operating at capacity when the special order is received from the overseas customer and the special discounted price on the special is $25.60 per unit. By how much would this special order increase (decrease) the company's net operating income for the month? show support

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