Comune Grada Course CLON-CAPA PROBLEMS - PROBLEMS SPECIAL ORDER DECISION. When Products, a maker of specialty products, is currently manufacturing and selling a product called Gory Goo. A count department store, 1-Mart, has made one-time offer to purchase 58,000 units of Gary Gooot $1.75 per un forsin.Martstores. The name and packaging for these 96.000 units will be changed so as not to appear to be the same as Gery Goo. Since Wham has enough excess capacity management would naturally be to produce and sell the additional units. But there is concern that $4.75 is below Gory Goo's unit manufacutring costs and will below It's normal selling price, which is set to above unit manufacturing costs Last year, Gary Goe's unit sales were 390,000 and its total manufacturing costs were Direct material Direct labor Variablesverhead Fhed Overhead Total manufacturing $418,000 228,000 342.000 1,330,000 $2,318,000 In addition to the manufacturing costs, there were sining and administrative expenses sociated with Gary Goo. Variable selling and administrative expenses were $1.50 per unit, and feed selling and administrative expenses were $190,000 For the special order, unit verable malucturing costs are expected to be the same as they were last year, and fixed manufacturing costs are not expected to increase and selling and intrative expenses wo expected to increase, but because the special order units are being sold directly to the -Mart chain, variable selling and administrative expenses are expected to be only $0.90 per unit I though the spect orders will have a different name and packaging. Wham's marketing group sti belleves that approximately 7.000 units from the special order will be sold to customers who would ay theory Goo from Whem. The group also believes that Mart has no other source for the Gory Geo product QUE Ir the format, what will be the effect on form profits Thes