The following information was developed for Beta Company for the year ended December 31, 2016.

Sales

$1,000,000

Variable Expenses

$540,000

Contribution Margin

$460,000

Fixed Expenses

$285,000

Net Income

$175,000

Beta expected to sell 500,000 cans of fish food by the end of the year.

The local conservation society asked Beta if they could supply 70,000 cans at $1 each.

Betas CEO would like to help out but he is concerned about the impact on the bottom line.

He asks you to prepare an analysis using the contribution margin technique (Special order technique) and provide

him your recommendation.

	Without Special Order 500,000 Units	Special Order 70,000 Units	Per Unit	With Special Order 570,000 Units
Sales
Variable Expenses
Contribution Margin
Fixed Expenses
Operating Income
	Decrease in Net Income