Scotty's Scooters has the capacity to produce 3,150 scooters per year. The company currently produces and sells 2,700 scooters per year. It sells the scooters for $5,000 each. Based on current production levels, the cost of producing and selling one scooter is: Variable manufacturing cost $2,500 Fixed manufacturing cost $1,000 Variable SG&A cost $400 Fixed SG&A cost 32% Total cost $4,100 Recently Scotty's received a special order for 400 scooters from the Laguna Beach Police Department. The Police Dept wants to pay $4,200 per scooter. To satisfy the Police Dept's needs, Scotty's will need to add storage space to the design of the special order scooters. This will cause a one-time xed cost of $250,000, but it will not affect the manufacturing cost of the scooters. Because Scotty's will not need to pay sales commissions on this order, the normal variable SG&A cost will be reduced $100 per scooter