Zephram Corporation has an annual plant capacity to produce 5,000 units. Its predicted operations for

the year follow:

Sales volume 3,800 units

Sales price $42 per unit

Direct materials $15 per unit

Direct labor $10 per unit

Variable overhead $4.5 per unit

Fixed overhead (based on predicted sales) $1.5 per unit

Variable selling & administrative $2.5 per unit

Fixed selling & administrative $4,500

One of Zephrams customers asked the company to fill a special order of 1,200 units at $31 per unit.

No variable selling costs will be incurred on the special order and unit variable manufacturing

overhead cost on the special order will be reduced by 55%. However, if the order is accepted,

management estimates that per unit direct materials and per unit direct labor of the special order units

will increase by 35% as a result of special packaging requested by the customer.

Required:

Complete the below table to evaluate the effect of this special order on Zephrams profitability.

Income statement