Fleming Company had the following results of operations for the past year: $\begin{array}{l}
\text { Sales }(10,000 \text { units at } \$ 6.80) & \$ 68,000 \
\text { Materials and direct labor } & (20,000) \
\text { Overhead }(40 \% \text { variable) } & (10,000) \
\text { Selling and administrative expenses (all } & (6,000)
\text { fixed) }\\text { Operating income }&\$32,000
\end{array}$
A foreign company (whose sales will not affect Fleming's regular sales) offers to buy 2,000 units at $5.00 per unit. In addition to variable manufacturing costs, there would be shipping costs of $1,200 in total on these units. Should Fleming take this order? Explain.

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The Answer of Fleming Company had the following results of operations for the past year: $\begin{array}{l}
\text { Sales }(10,000 \text { units at } \$ 6.80) & \$ 68,000 \
\text { Materials and direct labor } & (20,000) \
\text { Overhead }(40 \% \text { variable) } & (10,000) \
\text { Selling and administrative expenses (all } & (6,000)
\text { fixed) }\\text { Operating income }&\$32,000
\end{array}$
A foreign company (whose sales will not affect Fleming's regular sales) offers to buy 2,000 units at $5.00 per unit. In addition to variable manufacturing costs, there would be shipping costs of $1,200 in total on these units. Should Fleming take this order? Explain.

Fleming Company Had the Following Results of Operations for the Past