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The following information relates to a product produced by Orca Company Direct materials Direct labor Variable overhead Fixed overhead Unit cost $20 14 12 16

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The following information relates to a product produced by Orca Company Direct materials Direct labor Variable overhead Fixed overhead Unit cost $20 14 12 16 $62 Fixed selling costs are $1,000,000 per year. Although production capacity is 500,000 units per year, Orca expects to produce only 400,000 units next year. The product normally sells for $80 each. A customer has offered to buy 60,000 units for $60 each The customer will pay the transportation charge on the units purchased. If Orca accepts the special order, the effect on operating profits would be a

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