Flounder Manufacturing has an annual capacity of 80,900 units per
year. Currently, the company is making and selling 78,200 units a
year. The normal sales price is $101 per unit, variable costs are
$65 per unit, and total fixed expenses are $2,000,000. An
out-of-state distributor has offered to buy 5,700 units at $75 per
unit. Flounder's cost structure should not change as a result of
this special order.
By how much will Flounder's income change if the company accepts
this order?
Flounder’
net income will decrease/increase by $____ if it accepts the
special order