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is not expected to have any effect on Dunbar's regular sales Read the requirements. ...

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Accounting

is not expected to have any effect on Dunbar's regular sales
Read the requirements.
Requirement 1. How would accepting the special order impact Dunbar's operating income? Should Dunbar accept the special order? to indicate a decrease in contribution margin and/or operating income from the special order)
Incremental Analysis of Special Sales Order Decision
Total Order
(15,000 units)
Revenue from special order
Less expenses associated with the order:
Less: Variable manufacturing cost
Contribution margin
Less: Additional fixed expenses associated with the order
Increase (decrease) in operating income from the special order
Requirements
How would accepting the special order impact Dunbar's operating income? Should Dunbar accept the special order?
How would your analysis change if the special order sales price were to be $3500 per unit and Dunbar would have to pay an attorney a fee of $13,000 to make sure it is complying with export laws and regulations relating to the special order?
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