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Question 1: Journey Co. budgeted sales of 400,000 calculators at $40 per unit for the year. Variable manufacturing costs were budgeted at $16 per unit, and fixed manufacturing costs at $10 per unit. A special order offering to buy 40,000 calculators for $18 each was received by Journey in March. Journey has sufficient plant capacity to manufacture the additional quantity; however, the production would have to be done on an overtime basis at an estimated additional cost of $3 per calculator. Acceptance of the special order would not affect Journey's normal sales and no selling expenses would be incurred. What would be the effect on operating profit if the special order were accepted?
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