Seaway Motors manufactures motors used in speed boats. The company has received a special order from a marina in British Columbia to buy 150 Motors at $650 each. Acceptance of the special order will not affect fixed costs but will result in $2,000 of shipping costs.

For the first 6 months of 2019, the company reported the following operating results while operating at 70% capacity:

Sales (10,000 units)	$20,000,000
Cost of goods sold	14,000,000
Gross profit	6,000,000
Operating expenses	2,000,000
Net income	$4,000,000

Cost of goods sold was 60% variable and 40% fixed; operating expenses were 75% variable and 25% fixed.

Instructions:

a) Prepare an incremental analysis for the special order.

b) In the box below, enter the impact on income

c) After completing the quiz, upload all calculations supporting your answer including a decision to Accept or Reject the Special Order