Lipe Corporation has received a request for a special order of 5,000 units of product QRS for $21 each. Lipes regular per unit price for QRS is $28 and the per-unit cost is $20, as shown:

Direct materials	$8
Direct labor	6
Variable manufacturing overhead	1
Fixed manufacturing overhead	5
Unit product cost	$20

Lipe has sufficient capacity to take the order without disrupting sales to its regular customers. The company believes the order will have no effect on the company's existing fixed manufacturing overhead costs, but it would have to buy a new piece of equipment to slightly modify the products shape. The equipment costs $15,000 and would have no future use.

Chalk Corporation produces three products, X, Y, Z, from a single raw material input. Product Y can be sold at the split-off point for $52,000, or processed further at a cost of $19,000, and sold for $67,000.

Which of the following statements is true concerning Product Y?

Multiple Choice

• $15000

• $(10000)

• $(35000)

• $30000