Sheridan Water Co$.$ is a leading producer of greenhouse irrigation systems. Currently, the company manufactures the timer unit used

in each of its systems. Based on an annual production of $43,000$ timers, the company has calculated the following unit costs. Direct

fixed costs include supervisory and clerical salaries and equipment depreciation.

Direct materials

Direct labor

Variable manufacturing overhead

Direct fixed manufacturing overhead

Allocated fixed manufacturing overhead

Total unit cost

$$12$

$6$

$4$

$10$

$6$

$$38$

$(30\%$ salaries, $70\%$ depreciation$)$

Clifton Clocks has offered to provide the timer units to Sheridan at a price of $$36$ per unit. If Sheridan accepts the offer, the current

timer unit supervisory and clerical staff will be laid off.

$$

Current Attempt in Progress

Bridgeport Company is a leading manufacturer of sunglasses. One of Bridgeport's products protects the eyes from ultraviolet rays. An

upscale sporting goods store has contacted Bridgeport about purchasing $30,300$ pairs of these sunglasses. Bridgeport's unit

manufacturing cost, based on a full capacity of $258,000$ units, is as follows:

Direct materials

Direct labor

Manufacturing overhead $(75\%$ fixed$)$

Total manufacturing costs

$$8$

$6$

$23$

$$37$

Bridgeport also incurs selling and administrative expenses of $$75,800$ plus $$4$ per pair for sales commissions. The company has plenty

of excess manufacturing capacity to use in manufacturing the sunglasses. Bridgeport's normal price for these sunglasses is $$44$ per

pair. The sporting goods store has offered to pay $$36$ per pair. Since the special order was initiated by the sporting goods store, no

sales commission will be paid.

What would be the effect on Bridgeport's income if the special order were accepted?