The manufacturing capacity of Mcknight Rotator Requirements Company's plant facility is 68,000 rotators per (a) Determine the impact on operating quarter. Operating results for the first quarter of this income if Mcknight accepts this order. year are as follows. What other considerations are Sales (40,000 Units at $14) $ 560,000 relevant in this decision? Variable Manufacturing and Selling (b) Assume that Mcknight decides to run Costs 196,000 an extra shift so that it can accept the foreign order without forgoing sales to Contribution Margin 364,000 its regular domestic customers. The 98,500 proposed extra shift would increase Fixed Costs capacity by 20% and increase fixed Operating Income $ 265,500 costs by $26,000. Determine the impact on operating income if A foreign distributor has offered to buy 34,000 units Mcknight operates the extra shift and at $13 per unit during the second quarter of this accepts the export order. What other year. Domestic demand is expected to remain the considerations are relevant in this same as in the first quarter. decision? . Requirement (a) Determine the impact on operating income if Mcknight accepts this order. What other considerations are relevant in this decision? Begin by determining the operating income for Mcknight during the second quarter of this year. Sales Variable manufacturing and selling costs Contribution margin Fixed costs Operating income