Special Order

Pope Company manufactures a variety of hiking boots and has received a special one$-$time$-$only order from a new customer. Pope has sufficient idle capacity to accept the special order to manufacture $800$ pairs of boots at a price of $$48\mathrm{.}00$ per pair. Pope$$s normal selling price is $$65\mathrm{.}00$ per pair of boots. Variable manufacturing costs are $$35\mathrm{.}00$ per pair and fixed manufacturing costs are $$12\mathrm{.}00$ a pair. Pope$$s variable selling expense for its normal line of boots is $$1\mathrm{.}00$ per pair.

What would the effect on Pope$$s operating income be if the company accepted the special order?

Pope's operating income would Answer

by $Answer

$0$

if the order was accepted.