Mini-Exercise 16-2 (Algo) Accept special sales order? LO 16-2, 16-3

Lakeside Incorporated produces a product that currently sells for $52 per unit. Current production costs per unit include direct materials, $14.00; direct labor, $16.00; variable overhead, $9.00; and fixed overhead, $9.00. Lakeside currently has unused production capacity.

Required:

Calculate the effect on Lakeside's operating income of accepting the order from the nonprofit organization.

Should Lakeside accept this special sales order?