Wildhorse Packaging Company is a leading manufacturer of cardboard boxes and other product packaging solutions. One of the companys major product lines is custom-printed cake boxes that are sold to some of the countrys best known bakeries at a price of $0.50 per box. To maintain its high-quality image, Wildhorse uses a thick premium coated paper for all of its cake boxes. Based on annual production of 1,000,000 boxes, Wildhorses cost for producing a box is as follows:

Paper		$0.12
Ink		0.03
Direct labor		0.05
Variable overhead		0.07
Fixed overhead		0.10
Total cost per box		$0.37

Andrea Borden, a recent graduate of the Culinary Institute of America, is opening a new bakery in her hometown. She recently contacted Brad Lail, Wildhorses top salesperson, about purchasing cake boxes for her new store. Brad described Wildhorses boxes, emphasizing the high-quality paper and the unique printing process the company uses. Andrea is looking for ways to lower her operating costs, so after hearing Brad describe Wildhorses boxes, she told him that all she needed was a simple, unprinted box. Andrea also told Brad that she needs 12,000 boxes and is willing to pay $0.20 per box.

After visiting with Andrea, Brad received a fax from one of Londons top bakeries. The bakerys normal box supplier suffered some fire damage and is unable to ship the bakerys order of 12,000 boxes this month. The bakerys owner is asking if Wildhorse can fill a onetime rush order of 12,000 boxes printed with the bakerys logo. The bakery is willing to pay a 10% price premium to expedite the order. If Wildhorse accepts the order, it will incur $794 in export taxes and shipping. Calcuate the Profit on special order.