Question #$4$

Super Surfer Skateboard Company of Santa Barbara, California produces and sells

their famous Hobie Alter Signature Skateboard. The company has been producing

$22,400$ skateboards per year while only operating at $47\%$ of their plant's capacity.

Unit information about its product is as follows:

The company received a proposal from a business in Germany to buy $6,300$

Skateboards at $$109$ each. This is a one$-$time only order and acceptance of this

proposal will not affect the company's regular sales. The president of Super Surfer,

Mr$.$ Hobie Alter, Jr$.,$ is reluctant to accept the proposal because he is concerned

that the company will lose money on the special order.

Required:

Prepare an incremental analysis of this proposal and indicate the effect the

acceptance of this order would have on the company's income.

What qualitative factors should Mr$.$ Alter take into consideration?