sChukchi Corporation has received a request for a special order of 2,000 units of product B74 for $45. each. The normal selling price of this product is $95. each, but the units would need to be modified slightly for the customer. The normal unit product cost of product B74 is computed as follows: Direct Materials Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead Unit Product Cost $17.30 $ 23.60 $3.80 $6.70 $51.40 The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like some modifications made to product B74 that would decrease the variable costs by $2.50 per unit and that would require a one-time investment of $15,000 in special molds that would have no salvage value. This special order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order. Required: By how much would the company's net income increase or decrease as a result of this special order?

Chukchi Corporation has received a request for a special order of 2,000 units of product B74 for $45. each. The normal selling price of this product is $95. each, but the units would need to be modified slightly for the customer. The normal unit product cost of product B74 is computed as The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like some modifications made to product B74 that would decrease the variable costs by $2.50 per unit and that would require a one-time investment of $15,000 in special molds that would have no salvage value. This special order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order. Required: By how much would the company's net income increase or decrease as a result of this special order? Chokchi Corperation has received a request for a spectal order of 2.000 units of product 874 for 545 each. The normal seline peice of this product is $95 each, but the units woild need to be modined shightly for the cistomer. The normal unit product cost of product 874 is computed as rellowe: The special order would have no etfect on the company's total fovd mamutacturing overhead costs. The customer would ide some modifications made to product 874 that would decrease the variable costs by 52.50 per unit and thut would require a one-time investment of 515,000 in special molds that would have no salvage value. This special order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order. Required: Ey how much would the compony's net income increase or decrease as a result of this special arder