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SPECIAL ORDER EXERCISE Visionary Game Company sells 600,000 units of a particular video game DVD at $12 each. The current unit cost per game is broken down as follows: Direct Materials Direct Labor Variable Factory Overhead Fixed Factory Overhead 3.00 1.00 3.50 1.50 Scenario 1 At the beginning of 2018, Visionary received a special order from a video store for 10,000 of these game DVDs at a sale price of $8 per DVD. This is within Visionary's capacity to fill. Scenario 2 At the beginning of 2018, Visionary received a special order from the local Little League for 10,000 of these game DVDs at a sale price of $7 per DVD. This will add an additional $45,000 in fixed costs for Visionary. Prepare a contribution margin special order analysis to see whether they should fill the special order under each scenario. Explain why or why not. Visionary Game Company Scenario 1 Without Special Order Effect of Special Order Total Per Unit With Special Order Units Sales Variable Expenses Contribution Margin Fixed Expenses Operating Income Percentage increase in net income from Special Order=== Recommendation: Scenario 2 Without Special Order Effect of Special Order Total Per Unit With Special Order Units