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Perry Industries has an annual plant capacity of 67,000 units; current production is 50,000 units per year. At the current production volume, the variable
Perry Industries has an annual plant capacity of 67,000 units; current production is 50,000 units per year. At the current production volume, the variable cost per unit is $35.00 and the fixed cost per unit is $4.50. The normal selling price of Perry's product is $48.00 per unit. Perry has been asked by Caldwell Company to fil a special order fo 15,000 units of the product at a special sales price of $21.00 per unit. Caldwell is located in a foreign country where Perry does not currently operate Caldwell will marked the units in its country under its own brand name, so the special order is not expected to have any effect on Perry's regular sales Requirement 1. How would accepting the special order impact Perry's operating income? Should Perry accept the special order? The special order will Perry's operating income by $ accept the special sales order Thus, Perry
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