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

were on budget at $2,750$ units to date, with the following income statement reflecting its income for the first half of the year.

Sales

$$242,000$

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.

Your answer is partially correct.

Assume instead that the customer requests $105$ units in the special order and offers $$36$ per unit. Splish management still

believes there will be enough capacity to take on the special order. This time, however. variable selling costs will be incurred

because the customer is working through a sales representative. How much better or worse off will Splish Industries be if it

accepts this special order?

Splish Industries would be

by$

by accepting this order.

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