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  3. 8. montoya enterprises produces a sword that sells

8. Montoya Enterprises produces a sword that sells for $200. Although the company's production capacity...

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8. Montoya Enterprises produces a sword that sells for $200. Although the company's production capacity is 3,000 swords per year, only 2,500 swords are currently being produced and sold. Humperdinck Corporation has offered to purchase 500 swords as a one-time special purchase at a price of $160 per sword. If the special order is accepted, Montoya Enterprises will have to incur additional fixed costs of $1,000. At Montoya's current level of production (2,500 swords), the Montoya Enterprises incurs the following costs: Direct materials $200,000 Direct labor $100,000 Variable factory overhead $ 50,000 Fixed factory overhead $ 85,000 What will be the impact on Montoya's Enterprises' income if the special order is accepted

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