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Sato Awards has had a request for a special order of $10$ silver$-$plated trophies from the provincial tennis association. The normal selling

price of such a trophy is $$390\mathrm{.}00$ and its unit product cost is $$260\mathrm{.}00,$ as shown below:

Most of the manufacturing overhead is fixed and unaffected by variations in how many trophies are produced in any given period.

However, $$5$ of the overhead is variable, depending on the number of trophies produced. The customer would like a special logo

applied to the trophies requiring additional materials costing $$4$ per trophy and would also require acquisition of a special tool costing

$$510$ that would have no other use once the special order was completed. This order would have no effect on the company's regular

sales, and the order could be filled using the company's existing capacity without affecting any other order.

Required:

a$.$ What effect would accepting this order have on the company's operating income if a special price of $$340\mathrm{.}00$ is offered per trophy

for this order? $($Do not round intermediate calculations. Round your answer to $2$ decimal places.$)$

$2$

expenses for the past year follow:

$*$Allocated on the basis of program revenues.

to prepare for the next inevitable recession. After seeing the above report, Ewa asked for more information about the financial advisability of discontinuing the housekeeping program.

the salary of the program administrator would be avoided.

Required:

$1-$a$.$ Compute the change in net operating income for the company as a whole if housekeeping program be discontinued.

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