Question Completion Status: Crystal winery produces premium wine. Its success in the industry is due to its quality, although all of its customers, wine shops and specialty grocery stores, are very cost conscious and negotiate for price cuts on all large orders. Noting that the wine industry is becoming increasingly competitive Crystal winery is looking for a way to meet the challenge. It is negotiating with Culinary Delights, a regional specialty grocery store, to purchase a large order of wine. Crystal Winery is currently producing under capacity and would like to keep its production facilities gaining better economies of scale by increasing production. Culinary Delights has aereed to a large order but only at a price of $39 per bottle. The special order can be produced in one batch with available capacity. Crystal winery has prepared the following data related to next month's operations (per unit for 10,000 bottles, made in 10 batches of 1,000 each) Sales price Per unit costs Variable manufacturing costs Variable marketing costs Fixed manufacturing costs Batch-related costs $5,000 per batch Special order information (order is produced in one batch) Sales units Sales price per bottle 2,000 39 $ No variable marketing costs are associated with this order, but Crystal winery has spent $2.500 during the past two months trying to get Culinary Delights to place the special order. A special Crystal Winery produces premium wine, its success in the industry is due to its quality, although all of its customers, wine shops and specialty grocery stores, are very cost conscious and negotiate for price cuts on all large orders. Noting that the wine industry is becoming increasingly competitive Crystal winery is looking for a way to meet the challenge. It is negotiating with Culinary Delights, a regional specialty grocery store to purchase a large order of wine Crystal Winery is currently producing under capacity and would like to keep its production facilities gaining better economies of scale by increasing production C ary Bechtsh e ed to a large order but only at a price of per bottle. The special order can be produced in one batch with available capacity. Crystal winery has prepared the following data related to next month's operations per unit for 10.000 bottles made in 10 batches of 1,000 each) Sales price Per unit costs Variable manufacturing costs Variable marketing costs Fixed manufacturing costs Batch-related costs 55.000 per batch Special order information order is produced in one batch Sales units Sales price per bottle No vale marketing costs are sociated with this order, but Crystal winery has spent 12.500 during the past two months trying to get Cuinary Delights to place the special order. A special Label needs to be designed for the special order, at a cost of $1.000 and printing costs for the new label would total 51.000 Required: How much will the special order change Crystal winery's total operating income
