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New Castle Company has the following data about its only product: Fixed manufacturing costs$72,000 Fixed selling and administrative costs$ 80,000 Variable manufacturing costs$1,030,000 Variable selling
New Castle Company has the following data about its only product:
Fixed manufacturing costs$72,000
Fixed selling and administrative costs$ 80,000
Variable manufacturing costs$1,030,000
Variable selling and administrative costs$120,000
Selling unit)$125
Units produced and sold23,000
Assume there is excess capacity.The company has received a special order for 1,000 units at $80.00 per unit.If the special order is accepted, what will be the effect on operating income?
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