exercise 21.13 (static) evaluating a special order (lo21-1, lo21-2, lo21-3) visionary game company sells 600,000 units per year of a particular video game at $20 each. the current unit cost of the game is broken down as follows. direct materials $ 5.00 direct labor 2.00 variable factory overhead 4.00 fixed factory overhead (average cost per unit) 3.00 total $ 14.00 at the beginning of the current year, visionary received a special order for 12,000 of these games per month, for one year only, at a sales price of $11 per unit. to fill the order, visionary will have to rent additional assembly space at a cost of $18,000 ($1,500 per month). compute the estimated increase or decrease in annual operating income that will result from accepting this special order.
