Question 1: Special order Sales volumen Revenue Variable costs 11.000 Contribution maryn 54.900 Fixed costs 51.000 12,000 Special order: A client wants to buy 30 units at a discounted price of $30 per unit. This is a one-time delle a short term decision. You have enough spare coecity to this special order without cutting back on your regular sules a) Use the gross approach to decide whether you should take the special ordert status up in special total amounts after adding the speciale Revenue $6,300 2200 Variable costs $1,600 10087 x Contribution margin 34.500 Pied costs 11.00 Pront 2.100 Should you take the special order? Why? YES. The profit with the special order YES - the profes higher with the special order ONO -- the low price for the special order reduces the contribution margin b) Use the incremental approach to decide whether you should take the special order. w much each amount changes after the onder Prcrementareve 200 Beremental de col Encremental contributionari Incre costs Prema pret Should you take the special order? Why? YES the incremental protiv YES the liste ON-the incremental profit is tower than the original profit