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Your Company produces a single product. The cost of producing and selling a single unit of this product is as follows: $18.00 $6.80 $2.40 $11.60

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Your Company produces a single product. The cost of producing and selling a single unit of this product is as follows: $18.00 $6.80 $2.40 $11.60 Direct materials Direct labor Variable factory overhead Fixed factory overhead Variable selling expense Fixed selling expense Original cost per unit $1.90 $5.10 $45.80 An order has been received from an overseas customer for 2,000 units to be delivered this month at a special discounted price of $41.60 per unit. If the special order is accepted. variable selling costs would decrease by 55%. The customer wants the item to be engraved This involves an additional $1.50 of direct labor per unit. The company will also need to purchase an engraving machine for $20,000, This special order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order. If the special order is accepted, what is the impact on the company's overall net operating income? O $3,710 O $7,090 $4,090 0 56,710 O $23,710 $24,090

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