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Luxo Industries has an annual plant capocity of 72,000 units; current production is 54,000 unith per yeat, At the current produchion volume, the variatble coat

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Luxo Industries has an annual plant capocity of 72,000 units; current production is 54,000 unith per yeat, At the current produchion volume, the variatble coat per unit is 535.00 and the fixed cost per unit is $4.70. The normal selling price of Luxe's product is 546.00 per unit Luve has been asked by foxter Company to fil a special order for 14.000 units of the product at a special sales price of $29.00 per unit. Dexter is located in a forelgn country where Live does not eyently operate. Dexter will mankel the units in ts country under its cwn brand name, so the special order is not expected to have any eflect on Luxe's regular nales. Read the 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 $16,000 to make sure it is complying with export laws and regulations relating to the special order? 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 " or a minus sign to indicate a decrease in contribution margin and/or operating income from the special order.) Requirement 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 a is complying with export laws and regulations relating to the special order? (Enter a "0" for any zero balances. Use parentheses or a minus margin and/or operating income from the special order.) margif whilior operating income from the special order.)

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