Exerclse $4-27($Algo$)$ Speclal Orders $($LO $4-1,2)$

Nardin Outfitters has a capacity to produce $22,000$ of their special arctic tents per year. The company is currently producing and selling $5,000$ tents per year at a selling price of $$1,900$ per tent. The cost of producing and selling one tent follows:$$640190180150$$$1,160$

The company has received a special order for $2,500$ tents at a price of $$800$ per tent from Chipman Outdoor Center. It will not have to pay any sales commission on the special order, so the variable selling and administrative costs would be only $$65$ per tent. The special order would have no effect on total fixed costs. The company has rejected the offer based on the following computations:Required:$0.$ What is the impact on profit for the year if Nardin Outfitters accepts the special order?b$.$ Do you agree with the decision to reject the special order?

Complete this question by entering your answers in the tabs below.

Required A

Required B

What is the impact on profit for the year if Nardin Outfitters accepts the special order? $($Enter your answers in thousands rounded to $1$ decimal place. $($i$.$e$,5,400,400$ should be entered as $5,400\mathrm{.}4).$ Select option "higher" or "lowker", loeeping Status: quo as the base. Select "none" if there is no effect.$)$

$\backslash$table$[[,($All revenu,$5$ ts in $$000),],[,$Status Quo $5000$ Units,Alternative $7500$ Units,Difference$],[$Sales revenue,,,$],[$Variable costs:,,,$],[$Manufacturing$,,,],[$Selling and adiministrative,,,$],[$Contribution margin,,,$],[$Fixed costs,,,$],[,,]]$