Luxe Industries has an annual plant capacity of 73,000 units; current production is 59,000 units per year. At the current production volume, the variable cost per unit is $31.00 and the fixed cost per unit is $4.70. The normal selling price of Luxe's product is $50.00 per unit. Luxe has been asked by Caldwell Company to fill a special order for 12,000 units of the product at a special sales price of $29.00 per unit. Caldwell is located in a foreign country where Luxe does not currently operate. Caldwell will market the units in its country under its own brand name, so the special order is not expected to have any effect on Luxe's regular sales. Read the requirements. Requirement 1. How would accepting the special order impact Luxe's operating income? Should Luxe accept the special order? Complete the following incremental analysis to determine the impact on Luxe's operating income if it accepts this special order. (Enter a "0" for any zero balances. Use parentheses or a minus sign to indicate a decrease in contribution margin and/or operating income from the special order.) Incremental Analysis of Special Sales Order Decision Revenue from special order Less expenses associated with the order: Less: Variable manufacturing cost Contribution margin Less: Additional fixed expenses associated with the order Increase (decrease) in operating income from the special order Total Order (12,000 units) Requirements 1. How would accepting the special order impact Luxe's operating income? Should Luxe accept the special order? 2. How would your analysis change if the special order sales price were to be $43.00 per unit and Luxe would have to pay an attorney a fee of $18,000 to make sure it is complying with export laws and regulations relating to the special order?