BRK Company, which Manufactures bags, has a Capacity of 130,000bags per month. Currently its operating capacity is 100,000 units. The company receives a special order of 20,000 bags at $9 a bag. A Predicted Income Statement for the year without this special order follows:
Per Unit
 Total
   Sales Revenue
 $12.50
 $1,250,000
    Manufacturing Costs:
    Variable
 $ 6.25
 $ 625,000
   Fixed
 $ 1.75
 $ 175,000
   Total Man. Costs
 $ 8.00
 $ 800,000
   Gross Profit
 $ 4.50
 $ 450,000
   Selling & admin. Costs:
 
 
   Variable
 $ 1.80
 $ 180,000
   Fixed
 $ 1.45
 $ 145,000
   Total Selling & admin Costs
 $ 3.25
 $ 325.000
   Operating Profit
 $ 1.25
 $ 125,000
  If the order is accepted, all fixed costs are not affected.
Required:
 
 -Should the special order be accepted?
 -At what selling price per unit from the customer would the company be economically indifferent between accepting and rejecting the order?
 -What price per unit should be charged on the special order to increase operating profit by $9,000?