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The unit costs of producing and selling the single product for Elhard Company's normal sales of 40,000 units are as follows (per unit, on normal
The unit costs of producing and selling the single product for Elhard Company's normal sales of 40,000 units are as follows (per unit, on normal sales): $18.00 $6.80 $2.40 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling & administrative expense Fixed selling & administrative expense $11.60 $1.90 $5.10 The normal selling price is $51.10 per unit. An order has been received from a customer for 1,940 units at a special price of $41.40 per unit. There is ample idle capacity. This order would have no effect on the company's normal sales or fixed costs. The unit variable selling & administrative expense per unit would be $1.40 on the special order (which is $0.50 less than that on normal sales). What would be the impact on Elhard's net operating income if this special order is accepted? Elhard's net operating income would increase by $24,832 Elhard's net operating income would decrease by $18,818 Elhard's net operating income would decrease by $8,536 Elhard's net operating income would increase by $7,566
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