Canvas Company Manufactures Sonars for Fishing Boats Alejandro Bauista,the Sales Manager,wants to Offer a Special Sale to for $310.Canvas

Canvas Company manufactures sonars for fishing boats.Its Model 70 sells for $310.Canvas produces and sells 5,600 of them per year.Cost data follow:
$$\begin{array} { | l | r | c | } \hline \text { Variable manufacturing } & \$ 100 & \text { per unit } \\\hline \text { Variable selling and administrative } & \$ 17 & \text { per unit } \\\hline \text { Fixed manufacturing } & \$ 290,000 & \text { per year } \\\hline \text { Fixed selling and administrative } & \$ 150,000 & \text { per year } \\\hline\end{array}$$ Alejandro Bauista,the sales manager,wants to offer a special sale to a new customer that outfits boats.He proposes a sale of 40 units at a special price of $148 per unit.Alejandro believes that it will not affect the company's regular sales in the long run because it is a one-time transaction.The sale will require the normal variable costs,both selling and administrative costs and manufacturing costs,but will not impact the fixed costs.The president of the company has some reservations but finally agrees to make the deal if and only if it adds a minimum of $1,500 to operating income.Based on the president's criteria,Canvas will not make the offer.