The Immanuel Company has just obtained a request for a special order of 6,000 jigs to be shipped at the end of the month at a selling price of $7 each. The company has a production capacity of 90,000 jigs per month with total fixed production costs of $144,000. At present, the company is selling 80,000 jigs per month through regular channels at a selling price of $11 each. For these regular sales, the cost for one jig is:

If the special order is accepted, Immanuel will not incur any selling expense; however, it will incur shipping costs of $0.30 per unit. Total fixed production cost would not be affected by this order.

40. If Immanuel accepts this special order, the change in monthly net operating income will be a: A. $12,600 increase B. $14,400 increase C. $3,600 increase D. $1,800 increase

41. At what selling price per unit should Immanuel be indifferent between accepting or rejecting the special offer? A. $7.40 B. $7.70 C. $6.40 D. $4.90