Problem 2 (Textbook Reference: P6-3)-Decide whether to accept or reject special order Ocean View Company operates tour bosts. Its predicted operations for the year are as follows 400,000 S250 per tour Sales (1,000 tours per year) Costs Variable Fbed S100,000 per year The company has received a request to offer 100 tours for $300 each. Ocean View has plenty of capacity to do these tours in addition to its regular business. Doing these tours would not affect the company's regular sales or Required: a. Should the company do the special tours for $300 per tour? its fixed costs. Sales revenue Less: Variable costs Contribution margin *Ifthe contribution margin is pos itive, Ocean Vie wshould ACCEPT the special order b. What is the effect of the decision on the company's operating profit?(Answer to part B bokded bekow). Answer: Since regular sales will not change, nor will fixed manufacturing costs or marketing and administrad casts, any contribution margin from the special tours will increase operating profit directly. Therefore, the compar operating profit will increase by $5,000