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Lakeside Incorporated produces a product that currently sells for $$70$ per unit. Current production costs per unit include direct materials, $$18\mathrm{.}50$; direct labor, $$20\mathrm{.}50$; variable overhead, $$13\mathrm{.}50$; and fixed overhead, $$13\mathrm{.}50.$ Lakeside has received an offer from a nonprofit organization to buy $9,700$ units at $$53\mathrm{.}50$ per unit. Lakeside currently has unused production capacity.

Required:

Calculate the effect on Lakeside's operating income of accepting the order from the nonprofit organization.

Should Lakeside accept this special sales order?Lakeside Incorporated produces a product that currently sells for $$70$ per unit. Current production costs per unit include direct

materials, $$18\mathrm{.}50$; direct labor, $$20\mathrm{.}50$; variable overhead, $$13\mathrm{.}50$; and fixed overhead, $$13\mathrm{.}50.$ Lakeside has received an offer from a

nonprofit organization to buy $9,700$ units at $$53\mathrm{.}50$ per unit. Lakeside currently has unused production capacity.

Required:

a$.$ Calculate the effect on Lakeside's operating income of accepting the order from the nonprofit organization.

b$.$ Should Lakeside accept this special sales order?

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Required B

Calculate the effect on Lakeside's operating income of accepting the order from the nonprofit organization.

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