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Jiffy Mart, Inc. is a manufacturing company. Its plant capacity is sufficient to produce 35,000 units per month. The following information is available for the factory. $26.00 Sales price per unit Variable cost per unit: Direct Materials Direct Labor Variable Overhead Fixed costs per month 10.50 3.50 $122,000 Jiffy Mart, Inc. has just received a one-time-special order for 5,000 units of the product at $22 per unit. The special order would require special packaging and the estimated additional cost is $1.00 per unit. There would be no shipping costs, so the variable overhead costs would decrease by $0.5 per unit. Required: a. Suppose the current production and sales at Jiffy Mart is 30,000 units per month, using incremental revenue and an incremental costs, compute the expected effect of accepting the offer on Jiffy Mart's operating income. b. Suppose the current production and sales at Jiffy Mart is 35,000 units per month, using incremental revenue and an Incremental costs, compute the expected effect of accepting the offer on Jiffy Mart's operating income In addition to the quantitative analysis in a special order decision, what qualitative considerations are important for making the right decision? Attach File Browse My Computer As Moving to the next question prevents changes to this answer. Question 1 of 24

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