PCGelco Manufacturing produces and sells oil filters for $3.35 each. A retailer has offered to...
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PCGelco Manufacturing produces and sells oil filters for $ each. A retailer has offered to purchase oil filters for $ per filter. Of the total manufacturing cost per filter of $ $ is the variable manufacturing cost per filter. For this special order, PCGelco would have to buy a special stamping machine that costs $ to mark the customer's logo on the specialorder oil filters. The machine would be scrapped when the special order is complete. This special order would use manufacturing capacity that would otherwise be idle. No variable nonmanufacturing costs would be incurred by the special order. Regular sales would not be affected by the special order. Would you recommend that PCGelco accept the special order under these conditions? Complete the following incremental analysis to help you make your recommendation. Use parentheses or a minus sign to indicate a decrease in operating income from the special order. tableIncremental Analysis of Special Sales Order Decision,Per UnitRevenue from special order,Total Order Less variable expense associated with the order: Contribution margin Increase decrease in operating income from the special order 
PCGelco Manufacturing produces and sells oil filters for $ each. A retailer has offered to purchase oil filters for $ per filter. Of the total manufacturing cost per filter of $ $ is the variable manufacturing cost per filter. For this special order, PCGelco would have to buy a special stamping machine that costs $ to mark the customer's logo on the specialorder oil filters. The machine would be scrapped when the special order is complete. This special order would use manufacturing capacity that would otherwise be idle. No variable nonmanufacturing costs would be incurred by the special order. Regular sales would not be affected by the special order.
Would you recommend that PCGelco accept the special order under these conditions?
Complete the following incremental analysis to help you make your recommendation. Use parentheses or a minus sign to indicate a decrease in operating income from the special order.
tableIncremental Analysis of Special Sales Order Decision,Per UnitRevenue from special order,Total Order
Less variable expense associated with the order:
Contribution margin
Increase decrease in operating income from the special order
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