If grover accepts the special order what will be the impact


The Grover Corporation manufactures a product that it sells for $72.05. The variable costs are $39.90 and the annual fixed costs are $1328211. Grover's capacity is 102106 units per year but is currently only selling 57756 units per year. This is not expected to change in the future.

Grover was approached to provide 28489 units as a one-time order for a price of $45.20 per unit. If Grover accepts the special order, what will be the impact on operating income?

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