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Sarasota Manufacturing has an annual capacity of 85,100 units per year. Currently, the company is making and selling 78,600 units a year. The normal
Sarasota Manufacturing has an annual capacity of 85,100 units per year. Currently, the company is making and selling 78,600 units a year. The normal sales price is $116 per unit, variable costs are $86 per unit, and total fixed expenses are $2,000,000. An out-of-state distributor has offered to buy 11,600 units at $101 per unit. Sarasota's cost structure should not change as a result of this special order. By how much will Sarasota's income change if the company accepts this order? Sarasota's operating income will by $ if it accepts the special order.
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