Homework Answers
| Per unit | Total order(20000 units) | |
| Revenue from special order | 1.70 | 34000 |
| Less variable expense associated with the order: | ||
| Variable manufacturing costs | 1.25 | 25000 |
| Contribution margin | 0.45 | 9000 |
| Less: Additional fixed expenses associated with the order | 8000 | |
| Increase (decrease) in operating income from the special order | 1000 | |
| JCBilco should accept the special sales order because it will increase operating income. | ||
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