Pools R Us asked Summer Corp to produce 50 units at a special price of $240 per unit for a one-time only sale. The sale will not negatively impact the companys regular sales activities and will require the normal variable manufacturing costs and selling and administrative costs. There is plenty of excess capacity and the deal will not impact fixed costs. Create a Differencial Analysis of a Special Pricing Decision showing the expected increase or decrease in operating income if this order is accepted. This assignment must be submitted in EXCEL with working formulas in at least two cells.

: Learning Unit 4, Ch 25 Flexible Budget Graded: Learning Unit 4 Ch 25, Special Pricing Decision Summer Corp produces high end swimming pool floats. The Floater 5000 sells for $300. Summer produces and sells 6,000 of them per year. Cost data are as follows: Variable manufacturing $120 per unit Variable selling and administrative $19 per unit Fixed manufacturing $390,000 per year Fixed selling and administrative $175,000 per year