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Problem 2 (continued from previous page): Part 2: Special order (5 points) A customer has asked Gore Corporation to supply 5,000 units of product Y

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Problem 2 (continued from previous page): Part 2: Special order (5 points) A customer has asked Gore Corporation to supply 5,000 units of product Y 19, with some modifications, for $40 each. The normal selling price of this product is $55 each. The normal unit product cost of product Y19 is computed as follows: $30 Variable manufacturing costs (including direct materials, direct labor, and variable overhead) Fixed manufacturing overhead Total manufacturing costs per unit $16 $46 The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like some modifications made to product Y 19 that would increase the variable costs by $2 per unit and that would require a one-time investment of $30,000 in special molds that would have no salvage value. This special order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order. Determine the effect on the company's total net operating income of accepting the special order

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