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  3. jerston company has an annual plant capacity of 8,

Jerston Company has an annual plant capacity of 8,000 units. Data concerning this product are...

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Jerston Company has an annual plant capacity of 8,000 units. Data concerning this product are given below: Annual Sales at Regular Selling Prices 7,000 Units Manufacturing Costs: Variable $20.00 Per Unit Fixed $98,000.00 Per Year Selling and Administrative Expenses: Variable $8.00 Per Unit Fixed $17,500.00 Per Year The company has received a special order for 1,000 units at a selling price of $25 each. Regular sales would not be affected, and sales commissions on the 1,000 units would be reduced by 20%. This special order would have no impact on total fixed costs. INSTRUCTIONS Determine whether the company should accept the special order. When complete, answer each of the following by selecting the correct match from the list provided. What is the incremental revenue related to the special order? A. Disadvantage What is the incremental manufacturing costs related to the special B. $20,000 order? C. $25,000 What is the incremental selling and administrative expenses related D. $6,400 to the special order? E. $1,400 Is there an advantage or a disadvantage to accepting the special order? What is the amount of the advantage or disadvantage related to accepting the special order

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