Brike Company, which manufactures one product - robes, has
enough idle capacity available to accept a special order of 10,000
robes at $9 a robe. A predicted income statement for the year,
without this special order is as follows:
Sales revenue
$12.50
$1,250,000
Manufacturing costs:
Variable
6.25
625,000
Fixed
1.75
175,000
8.00
800,000
Gross profit
4.50
450,000
Marketing costs:
Variable
1.80
180,000
Fixed
1.45
145,000
3.25
325,000
Operating profit
$ 1.25
$ 125,000
If the order...