SPD TABLES, S. A., received an order for ten thousand tables from PLIN SERVICE, S. A. For the sales manager, this represents a triumph due to the strong sales potential it represents. Due to the volume of orders from Cadena Distribuidora, the bargaining power is on your side, and you are offering Tables Decorativas to buy them for $ 200 each; the normal selling price is $ 300. The company has the capacity to manufacture 50 thousand tables. Before receiving this offer from the potential client, Tables Decorativas had planned to produce and sell 40 thousand tables and had budgeted for the following income statement.

SALES: $ 12,000,000

Cost of Sales: $ 5,360,000

GROSS PROFIT: $ 6,640,000

Sales Expense: $ 1,430,000

Administration expenses: $ 370,000

PROFIT: $ 4,840,000

After analyzing the previous data, it was identified that the cost of sales is what it will cost the company to produce 40 thousand tables. This cost includes $ 560 thousand of fixed production costs (the rest is variable). Sales expenses include a 10% commission on the number of sales paid to sellers, it is the only variable (which does not apply in the special order). The administration fees are all fixed.

a. Based on this information, the sales manager must make a decision regarding whether to accept the special request to sell the tables (ten thousand) for $ 200 that he bills his normal customers at $ 300.

b. If the special order were for 12,000 tables and they decide to stop attending the routine sales, how much would be the relevant result and the overall result of accepting the special order?