points My Notes Ask Your Tescher Sales vollu 7,000 1,UOU Conributiun morgi 6,000 1,300 54,70n Variable costs Fixed costs Speu l order . A client wants to buy 40 units at discounted pro o' 530 per unit. This 8 a one tim deal .e a short term deos on You have enough spare capacity to ful ill this spec al order without cutting back on your regular sales. a) ise the gross appraach to decide whether you shoald take the special order status quo (na specia total amounts after adding Revenue Variable cocts $1,000 $5,000 $1,300 4,700 Profit Should you take the special order? Why? YES -the profit is pusitive with the special vrder NO he low price for the pecial order reduces the contribution margin YES--the profit is higher with the special anser b) Use the Incremental approach to decide whether you should take the special order changes after adding the special orde ncramental ravanua ncremental fxed cots Incremental profit should you take the special order? Why? YES -the total praft is posltive YES - - the incremental profit iz positive No the incremental profit is lower than the original profit 33