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Please type the answer Section 2 Special Order-25 Points The Sticky Gum Company has received a special order of 12,000 packages of mint flavored chewing
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Section 2 Special Order-25 Points The Sticky Gum Company has received a special order of 12,000 packages of mint flavored chewing gum to be shipped by month end at a selling price of $14 each. The company has a production capacity of 180,000 mint gum packages a month with total fixed production costs of $288,000. Presently, the company has demand of 170,000 mint gum packages a month at a selling price of $22 each. For the normal order, the cost of 1 mint gum package is If, the special order is accepted, the company will not incur any selling expense; however, it will incur shipping costs of $0.60 per unit. Total Fixed Production Costs would not be affected by the special order. Should we accept the special order? What would the change in monthly net operating income? If, the company accepted the special order
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