Blowing Sand Company has just received a one-time offer to purchase 8,000 units of its Gusty...

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Blowing Sand Company has just received a one-time offer to purchase 8,000 units of its Gusty model for a price of $23 each. The Gusty model normally sells for $31 and costs $27 to produce ($19 in variable costs and $8 of fixed overhead). Because the offer came during a slow production month, Blowing Sand has enough excess capacity to accept the order. 1. Should Blowing Sand accept the special order? Yes O No 2. Calculate the increase or decrease in short-term profit from accepting the special order. Blowing Sand Company has just received a one-time offer to purchase 8,000 units of its Gusty model for a price of $23 each. The Gusty model normally sells for $31 and costs $27 to produce ($19 in variable costs and $8 of fixed overhead). Because the offer came during a slow production month, Blowing Sand has enough excess capacity to accept the order. 1. Should Blowing Sand accept the special order? Yes O No 2. Calculate the increase or decrease in short-term profit from accepting the special order.

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