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Wehrs Corporation has received a request for a special order of 9,800 units of product K19 for $4750 each. The normal selling price of this

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Wehrs Corporation has received a request for a special order of 9,800 units of product K19 for $4750 each. The normal selling price of this product is $52.60 each, but the units would need to be modied slightly for the customer. The normal unit product cost of product K19 is computed as follows: Direct materials $18. 39 Direct labor 7.68 Variable manufacturing overhead 4.89 Fixed manufacturing overhead 7.76 Unit product cost $33-49 Direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like some modications made to product K19 that would increase the variable costs by $7.20 per unit and that would require a onetime investment of $47,000 in special molds that would have no salvage value. This special order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order. Required: Determine the effect on the company's total net operating income of accepting the special order. :I':|

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