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Trek Mountain Bikes received a request from the Colorado National Parks Department to produce 100 specially modified mountain bikes at a price of $179 each.

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Trek Mountain Bikes received a request from the Colorado National Parks Department to produce 100 specially modified mountain bikes at a price of $179 each. The mountain bikes would be used by park rangers to patrol certain areas of the Rocky Mountain National Park. The normal selling price of Trek's patrol line is $249 per bike and the unit product cost of $182 is calculated as shown below: The variable portion of the manufacturing overhead is $6 per unit. The special order would have no effect on the company's fixed overhead. The modifications to the bikes would include brackets to hold radios, nightsticks, and additional water bottles. These modifactions would cost $17 per bicycle in additional variable costs. In addition, the company would have to pay a graphics design studio $1,200 to design and cut stencils that would be used to spray on the Colorado National Parks logo. This order would have no effect on the company's other sales and the company has plenty of capacity for the production. 1. What effect would accepting the special order have on the company's net operating income

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