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Zilch Corporation manufactures a single product with the following unit costs for 1,250 units:
Direct materials $2,300
Direct labour 960
Factory overhead (30% variable) 1,800
Selling expenses (50% variable) 900
Administrative expenses (10% variable) 840
Total per unit $6,800
Recently, a company approached Zilch Corporation about buying 100 units for $5,100 each. Currently, the models are sold to dealers for $7,900. Zilch Corporation's capacity is sufficient to produce the extra 100 units. No additional selling expenses would be incurred on the special order.
Question 1: How much will income change if the special order is accepted?
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