Calculate Variable Manufacturing Costs for special order = Variable Costs per tile $2.15 x Number of Units in special order 3,000. $2.15 x 3,000 = $6,450 Step 2: Find Total Profit from special order (targeted at $0.50 profit per tile) = 3,000 tiles x $0.50 profit per tile. 3,000 x $0.50 = $1,500 Step 3: Compute Differential Revenue from special order = Total Profit from special order $1,500 Variable Manufacturing Costs for special order $6,450 Additional Selling and Administrative Costs for special order $250. $1,500 $6,450 $250 = $8,200.

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