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Refer to Exhibit 7-2. What are the differential costs associated with the special order? $232,500 $67,500 $127,500 $322,500 None of the answer choices is correct.

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Refer to Exhibit 7-2. What are the differential costs associated with the special order?

$232,500

$67,500

$127,500

$322,500

None of the answer choices is correct.

Exhibit 7-2 Jake Company is considering a special order for 5,000 units at a price of $60 per unit. Jake's product normally sells for $84 per unit and has variable manufacturing costs of S45 per unit and variable selling costs of $9 per unit. Fixed manufacturing costs are $150.000 and fixed selling and administrative costs are $300,000. Jake has capacity to produce 30.000 units and is currently producing 20.000 units. If the order is accepted. Jake will incur legal fees of $7,500 in connection with the order, but there will be no variable selling costs on the special order

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