**Please show work or explain**
1.) What are the differential revenues associated with thespecial order?Jake Company is considering a special order for 5,000units at a price of $60 per unit. Jake's product normally sells for$84 per unit and has variable manufacturing costs of $45 per unitand variable selling costs of $9 per unit. Fixed manufacturingcosts are $150,000 and fixed selling and administrative costs are$300,000. Jake has capacity to produce 30,000 units and iscurrently producing 20,000 units. If the order is accepted, , Jakewill incur legal fees of $7,500 in connection with the order, butthere will be no variable selling costs on the special order.What are the differential revenues associated with thespecial order?
a. $75,000
b. $120,000
c. $420,000
d. $300,000
e. None of these
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2.) What are the differential revenues associated with thespecial order?Jake Company is considering a special order for 5,000units at a price of $60 per unit. Jake's product normally sells for$84 per unit and has variable manufacturing costs of $45 per unitand variable selling costs of $9 per unit. Fixed manufacturingcosts are $150,000 and fixed selling and administrative costs are$300,000. Jake has capacity to produce 30,000 units and iscurrently producing 20,000 units. If the order is accepted, , Jakewill incur legal fees of $7,500 in connection with the order, butthere will be no variable selling costs on the special order.What are the differential costs associated with the specialorder?
a. $232,500
b. $67,500
c. $127,500
d. $322,500
e. None of these
