Rippey Corporation manufactures a single product with the following unit costs for 5,000 units:

Direct materials	$ 60
Direct labor	30
Factory overhead (40% variable)	90
Selling expenses (60% variable)	30
Administrative expenses (20% variable)	15
Total per unit	$225

Recently, a company approached Rippey Corporation about buying 1,000 units for $225. Currently, the models are sold to dealers for $412.50. Rippey's capacity is sufficient to produce the extra 1,000 units. No additional selling expenses would be incurred on the special order.

Required:

A.	What is the profit earned by Rippey Corporation on the original 5,000 units?
B.	Should Rippey accept the special order if its goal is to maximize short-run profits? How much will income be affected?
C.	Determine the minimum price Rippey would want to receive in order to increase profits by $7,500 on the special order.
D.	When making a special-order decision, what qualitative aspects of the decision should Rippey Corporation consider?

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