The WhataMedal Company manufactures medals for winners of athletic events and other contests. Its manufacturing plant has the capacity to produce 16,200 medals eachmonth; current production and sales are 12,600 medals per month. The company normally charges $190 per medal. Cost information for the current activity level is provided in the accompanying table.

\fIncrease (decrease) in operating income with special order Operating income lost from existing customers Net operating income increase (decrease) on accepting special order\fVariable costs (vary with units produced): Direct materials S 466,200 Direct labour 504,000 Variable costs (vary with number of batches): 142.800* Setups, materials handling, quality control Fixed manufacturing costs 330,000 Fixed marketing costs 220,000 1,663,000 Total costs "Costs of $142,800 are based on 210 batches at $680 per batch