Sunland Company produced and sold 58,000 units of product and is operating at 70% of plant capacity. Unit information about its product is as follows:

Sales price				$100
Variable manufacturing cost		$75
Fixed manufacturing cost ($580,000 58,000)		10		85
Profit per unit				$15

The company received a proposal from a foreign company to buy 9,400 units of Sunland Company's product for $80 per unit. This is a one-time only order and acceptance of this proposal will not affect the company's regular sales. The president of Sunland Company is reluctant to accept the proposal because he is concerned that the company will lose money on the special order.

Prepare a schedule reflecting an incremental analysis of this proposal. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Do not leave any field blank. Enter 0 for the amounts.)

SUNLAND COMPANY Incremental Analysis Proposal to sell 9,400 units at $80
		Reject Order		Accept Order		Net Income Increase (Decrease)
select an item SalesNet IncomeNet LossFixed CostsRevenuesCosts		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount
select an item Fixed CostsSalesNet LossCostsNet IncomeRevenues		enter a dollar amount		enter a dollar amount		enter a dollar amount
select a closing name Net IncomeRevenuesCostsNet LossSalesFixed Costs		$enter a total amount		$enter a total amount		$enter a total amount

Indicate the effect the acceptance of this order might have on the company's income.

Sunland Company would select an option increasedecrease its income by $enter a dollar amount by accepting the special order.