The following data relate to Smith manufactering:

Smith has the opportunty to take a one-time special order from a customer who wants to buy 10,000 units, but is only willing to pay $9.00 per unit. The special order will not affect Smith's anticipated sales to other customers or the company's fixed costs.

The following data relate to Smith Manufacturing: Anticipated sales.. 70,000 units Normal sales price/unit.. SIS Variable Manufacturing cost/unit... S5 Variable selling & administrative cost/unit...... $2 Fixed manufacturing cost... $84,000 ($1.20/unit) Fixed selling & administrative cost. $126,000 (SI.80/unit) Total cost/unit (full absorption)..... $10.00 Smith has the opportunity to take a one-time special order from a customer who wants to buy 10,000 units, but is only willing to pay $9.00 per unit. The special order will not affect Smith's anticipated sales to other customers or the company's fixed costs. 1) Prepare variable income statements without the special order and with the special order (see below). 2) Should Smith accept the special order (yeso)? Smith Manufacturing Income Statement Without Special Order With Special Order Sales.. S Variable cost of goods sold. Manufacturing margin.. Variable selling & administrative exp..... 00000000 00000000 Contribution margin..... Fixed costs: Fixed manufacturing costs... S Fixed selling & administrative exp Income from operations