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Painters Incorporated produces art prints. The cost of producing and selling a single art print is as follows Direct Materials $35.53 Direct Labour $6.96 Variable

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Painters Incorporated produces art prints. The cost of producing and selling a single art print is as follows Direct Materials $35.53 Direct Labour $6.96 Variable Manufacturing Overhead $3.00 Fixed Manufacturing Overhead $20.64 Variable Selling & Administrative Expense $2.10 Foxed Selling & Administrative Expense $8.04 ton The normal selling price of the product is $87 48 per unit. The company's current capacity is 70,000 art prints per month An order has been received from a one-time customer for 2,000 units to be delivered this month at a special discounted price. This order would have no effect on the companys normal sales and would not change the total amount of the company's fixed costs. The variable selling and administrative expense would be $132 less per unit on this order than on normal sales Direct labour is a variable cost in this company Required: ALL CALCULATIONS MUST BE SHOWN Suppose there is capacity to produce the units required by the one-time customer and the special discounted price on the special order is $19:32 per unit. By how much would this special order increase or decrease the company's operating income for the month? Should the company accept this offer? Paragraph 1 HO ING IN de 1134 5.04.2003 DOLL

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