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Relax Products manufactures t-shirts. It has the following costs when its production level is 120,000 units (t-shirts): (Click the icon to view the costs.) (Click
Relax Products manufactures t-shirts. It has the following costs when its production level is 120,000 units (t-shirts): (Click the icon to view the costs.) (Click the icon to view additional information.) What will happen to Relax's operating income if it accepts this special order? Data table More info The company's relevant range extends to 137,000 units. Relax has received a special order for 12,000 t-shirts at a special price of $75,000 for the entire order. The special order t-shirt would use a fabric that is less expensive than the standard fabric used by Relax, which would allow Relax to save $0.45 per t-shirt in direct materials when manufacturing this special order. Relax has the excess capacity to manufacture this special order. Its total fixed costs will not be impacted by the special order
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