The management team of Marigold Industries was evaluating its performance for the first half of the year. Production and sales of its

fans were on budget at $2,900$ units to date, with the following income statement reflecting its income for the first half of the year.

Variable costs:

Fixed costs:

Orders for the second half of the year were coming in slower than what the company had been expecting. When a new customer

called and requested a special discount, the sales team listened.