5.) Kimble has received a special order for 1,000 tables at $245. Capacity is sufficient to make the units, and sales at the regular price would not be affected. What will happen to profit if Kimble accepts the order?

6.) Repeat question 5 above, assuming now that the order is for 1,500 tables and that capacity is limited to 4,000 tables.

I. Comprehensive review of short-term decisions. The following data relate to the planned operations of Kimble Company before considering the changes described later. All fixed costs are direct, but unavoidable. Chair Sofa $600 $360 Product Table $400 $160 120 $280 $120 Selling price Variable costs Fixed costs Total costs Profit per unit Annual volume 180 $120 $ 40 30 $70 $50 8,000 $540 S_60 4,000 3,000 Required: Answer each of the following questions independently, unless otherwise instructed. I. Comprehensive review of short-term decisions. The following data relate to the planned operations of Kimble Company before considering the changes described later. All fixed costs are direct, but unavoidable. Chair Sofa $600 $360 Product Table $400 $160 120 $280 $120 Selling price Variable costs Fixed costs Total costs Profit per unit Annual volume 180 $120 $ 40 30 $70 $50 8,000 $540 S_60 4,000 3,000 Required: Answer each of the following questions independently, unless otherwise instructed