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Tamarisk Inc. manufactures two electronic products, widgets and gadgets, and has a capacity of 2,000 machine hours. Prices and costs for each product are as

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Tamarisk Inc. manufactures two electronic products, widgets and gadgets, and has a capacity of 2,000 machine hours. Prices and costs for each product are as follows: Widget Gadget $340 $260 Selling price per unit Variable costs per unit Direct materials Other direct costs Variable Manufacturing overhead costs 34 45 14 22 40 54 * Variable manufacturing overhead costs are applied at a rate of $50 per machine hour. Oak Industries, a potential client, has offered $259 per unit to Tamarisk for 259 special units. These 259 units would incur the following production costs and time: Direct materials $8,855 Other direct costs $4,000 Machine hours 235 Assume that Tamarisk is actually operating at 95% of full capacity, and additional machines can be rented at a cost of $36,000 to produce Oak's special order. If the special order is accepted calculate its effect on Tamarisk's profit. Net profit from doing the special order $

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