The Amalfi Corporation makes decorative vases for discerning collectors. While there are many different types of vases, the manufacturing process is very similar and differs only in cosmetic details. The firm operated at capacity in 2020. Data for 2020 is presented below.

selling price			$3,320,000
direct material			$1,230,000
direct labor			$559,000
fixed manufacturing OH			$729,000
gross profit			$802,000
fixed SG&A			$255,000
sales commissions (% of price)			$365,200
gross profit			$181,800
current sales and production volume			19,200
production capacity			20,400

One of Amalfi's long-term customers is an art dealer in NYC. This dealer has had a large order cancelled and wants to know if Amalfi can provide a special order of vases this month. Sales commissions will be paid at half the usual rate. Details of the special order are presented below.

number of vases for special order			2,400
requested price per vase			$140.00
one time design costs for NYC dealer order			$22,500

1. Calculate the CM for the special order.

price
DM
DL
fixed manufacturing OH
fixed SG&A
sales commissions
CM per unit

2. Calculate the profit or loss from accepting the special order in its entirety. Assume that Amalfi must reduce sales to current customers to stay under manufacturing capacity.

per unit total

price
DM
DL
fixed manufacturing OH
fixed SG&A
sales commissions
time design costs
the opportunity cost of lost sales
profit/loss from special order