Cliffy Industries produces and sells 22,000 units of a single product. Costs associated with this level...

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Cliffy Industries produces and sells 22,000 units of a single product. Costs associated with this level of production are as follows: Direct materials $15 per unit Direct manufacturing labor 45 per unit Variable manufacturing overhead 25 per unit Fixed manufacturing overhead $40, 000 The product normally sells for $160 per unit. Cliffy Industries has received a special order to sell 2,500 units at $130 per unit. Cliffy Industries has excess production сараcity. Required: a. How much will the operating income of Cliffy Industries change if the special order is accepted? Show all calculations. b. Should the special order be accepted? Explain why or why not. c. What are the other factors that Cliffy Industries should consider? Discuss. Cliffy Industries produces and sells 22,000 units of a single product. Costs associated with this level of production are as follows: Direct materials $15 per unit Direct manufacturing labor 45 per unit Variable manufacturing overhead 25 per unit Fixed manufacturing overhead $40, 000 The product normally sells for $160 per unit. Cliffy Industries has received a special order to sell 2,500 units at $130 per unit. Cliffy Industries has excess production сараcity. Required: a. How much will the operating income of Cliffy Industries change if the special order is accepted? Show all calculations. b. Should the special order be accepted? Explain why or why not. c. What are the other factors that Cliffy Industries should consider? Discuss.