Homework Homework (1): Mostafa company has annual capacity of 300,000 units. Budgeted production and seals for...

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Homework Homework (1): Mostafa company has annual capacity of 300,000 units. Budgeted production and seals for next year 280,000 units. the unit regular sale price is $40. the company has received a request for special order of 25,000 units for $30 per unit. the unit cost of the product at capacity: variable manufacturing cost variable selling fixed manufacturing cost fixed selling and administrative $20 $4 $5 $3 The special order would have no effect on the company's total fixed costs. The customer would like some modifications made to the product that would increase unit variable manufacturing cost by $5 per unit and that would require one time investment of $20,000 in a special equipment that would have no other use or market value. No variable selling cost will be necessary for that special order. Required: determine the effect of accepting the special order on the company's net operating income if the company is willing to give up some units of its regular sales. Homework Homework (1): Mostafa company has annual capacity of 300,000 units. Budgeted production and seals for next year 280,000 units. the unit regular sale price is $40. the company has received a request for special order of 25,000 units for $30 per unit. the unit cost of the product at capacity: variable manufacturing cost variable selling fixed manufacturing cost fixed selling and administrative $20 $4 $5 $3 The special order would have no effect on the company's total fixed costs. The customer would like some modifications made to the product that would increase unit variable manufacturing cost by $5 per unit and that would require one time investment of $20,000 in a special equipment that would have no other use or market value. No variable selling cost will be necessary for that special order. Required: determine the effect of accepting the special order on the company's net operating income if the company is willing to give up some units of its regular sales.