Grill Time sells its barbecue sets for $170 each.Suppose the company incurs the following average cost per barbecue set:
$\begin{array}{lr}
\text { Direct materials } & \$ 52 \
\text { Direct labor } & 28 \
\text { Variable manufacturing overhead } & 11 \
\text { Variable selling expenses } & 5 \
\text { Fixed manufacturing overhead } & \underline{24} \
\text { Total cost } & \$ 120 \
\text { * } \$ 1,800,000 / 75,000 \text { units }
\end{array}$
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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The Answer of Grill Time sells its barbecue sets for $170 each.Suppose the company incurs the following average cost per barbecue set:
$\begin{array}{lr}
\text { Direct materials } & \$ 52 \
\text { Direct labor } & 28 \
\text { Variable manufacturing overhead } & 11 \
\text { Variable selling expenses } & 5 \
\text { Fixed manufacturing overhead } & \underline{24} \
\text { Total cost } & \$ 120 \
\text { * } \$ 1,800,000 / 75,000 \text { units }
\end{array}$
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?

Grill Time Sells Its Barbecue Sets for $170 Each Grill Time Has Enough Idle Capacity to Accept a One-Time-Only