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P&T Furniture has a capacity to produce 40,000 oak shelves per year and is currently selling 36,000 shelves for $32 each. Bates Hotel has approached
P&T Furniture has a capacity to produce 40,000 oak shelves per year and is currently selling 36,000 shelves for $32 each. Bates Hotel has approached P&T about buying 1,400 shelves for a new hotel it is building and is willing to pay $30 for each shelf. The shelves can be packaged in bulk, saving P&T $2.00 per shelf compared to the normal packaging cost. Normally, the shelves have a unit variable cost of $29. The annual fixed costs of $450,000 will be unaffected by the special order and the order will not affect any of its other operations. What would be the impact on profit if P&T accepts this special order? O Profit will increase by $2,400. O Profit will decrease by $2,400. O Profit will decrease by $4,200. O Profit will increase by $4,200. O Profit will increase by $1,400
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