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What would the effect on Pope operating income be

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Question - Pope Company manufactures a variety of hiking boots and has received a special one-time-only order from a new customer. Pope has sufficient idle capacity to accept the special order to manufacture 1,400 pairs of boots at a price of $54.00 per pair. Pope's normal selling price is $65.00 per pair of boots. Variable manufacturing costs are $35.00 per pair and fixed manufacturing costs are $12.00 a pair. Pope's variable selling expense for its normal line of boots is $1.00 per pair.

Required - What would the effect on Pope's operating income be if the company accepted the special order?

Reference no: EM133025584

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