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Grill Time Sells Its Barbecue Sets for $170 Each

question 179

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Grill Time sells its barbecue sets for $170 each.Suppose the company incurs the following average cost per barbecue set:
Grill Time sells its barbecue sets for $170 each.Suppose the company incurs the following average cost per barbecue set:     * $ 1,800,000 / 75,000 units Grill Time has enough idle capacity to accept a one-time-only special order from Backyard Living,Inc.for 2,000 barbecue sets at a sales price of $130 per set.Grill Time will not incur $2 of variable selling expenses for this order. How would accepting the order affect Grill Time's operating income?
* $ 1,800,000 / 75,000 units
Grill Time has enough idle capacity to accept a one-time-only special order from Backyard Living,Inc.for 2,000 barbecue sets at a sales price of $130 per set.Grill Time will not incur $2 of variable selling expenses for this order.
How would accepting the order affect Grill Time's operating income?


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