To determine how much better or worse off Windsor Industries will be if it accepts the special order with the updated conditions, we need to calculate the incremental contribution margin and consider the variable selling costs. Given: - Special order quantity: 100 units - Special order price: $41 per unit - Variable costs per unit: - Direct Materials (DM): $15 per unit - Direct Labor (DL): $11 per unit - Variable Manufacturing Overhead (Variabh-MOH): $3 per unit - Variable selling cost: $8,400 First, let's calculate the incremental contribution margin per unit for the special order: Incremental Contribution Margin per unit = Special order price - Variable costs per unit = $41 - ($15 + $11 + $3) = $41 - $29 = $12 Next, let's calculate the incremental contribution margin for the entire special order: Incremental Contribution Margin = Incremental Contribution Margin per unit * Special order quantity = $12 * 100 units = $1,200 Since the special order incurs variable selling costs, we need to subtract the variable selling cost from the incremental contribution margin to determine the net incremental contribution margin. Net Incremental Contribution Margin = Incremental Contribution Margin - Variable selling costs