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Question No. 64 Marks: A customer has asked your company to supply 8,000 units of product 8 (after some modifications) for $35 per unit. The normal selling price of this product is $40 per unit. The normal unit product cost of product "B" is computed as follows: Direct materials 515 Direct labor 10 Variable manufacturing overheads Faed manufacturing overhead Total $32 The special order would have no effect on the company's totalfred manufacturing overhead costs. The customer would like some modifications made to products that would increase the variable costs by $2 per unit and that would require a one-time investment of $20,000 in special equipment that would have no salvage value. This special order would have no effect on the company's other sales. The company has sufficient spare capacity for producing the special order. Required: Determine the effect on the company's total net operating income of accepting the special order. b) should the company accept the special order or not? Explain Answer Page 7 of 7