Yippee Yeehaw,Inc. is approached by a international customer to fulfill a one-time-only special order for a product like one offered to domestic customers. The company has excess capacity. The following per unit data apply to sales of regular customers:

Sales Price $ 79

Variable costs:

Direct materials $25

Direct labor $15

Manufacturing support $10

Marketing costs $12

Fixed costs:

Manufacturing support $10

Marketing costs $5

Total costs $77

a) What is the normal contribution margin per unit?

b) Assuming variable marketing costs would be avoided, and an additional $7.00 per unit shipping cost on the special order, what is the minimum acceptable price per unit?

c) If variable marketing costs are avoidable and there is an additional $7.00 per unit shipping charge; what is the change in operating profits if the one-time-only special order for 10,000 units is accepted for $60 a unit? Be sure to state if the change is an increase or decrease.