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--- STELIAL UKUER DECISION. Huang Automotive is presently operating at 75% of capacity. The company recently received an offer from a Korean truck manufacturer to

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--- STELIAL UKUER DECISION. Huang Automotive is presently operating at 75% of capacity. The company recently received an offer from a Korean truck manufacturer to purchase 25,000 units of power ring we component for $198 per unit. Peter Wu, vice-president of sales, notes that although there will be an additional $3.00 shipping cost for each component, he thinks that in the one w get the company's "oot in the door of an expanding international market To determine variable and fixed costs, Huang's accountant used the high-low method with the following production and cost information for the last two years Total costs Total costs per unit 190,000 units $52,695,000 5297.34 240,000 units 561.720,000 $257.17 Chan, vice-president of engineering, feels that any new market should first show is profitability and that the 5198 per unit offer is not only below the regular 250 sing ra, but below the unit cost of the component. She also points out that there will be additional setup costs of $275,000 and that Hug will have to lose some special equipment for $220,000 REQUIRED [6 tries) 1. Using the righ-low method to budget costs of the special order, what would the expected profit on the special order be (u a negative sign for a 1997 Som Tries 0/6

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