Plastic Pipe Company manufactures a variety of pipes, and has received a special one-time-only order from a new customer. Plastic Pipe has sufficient idle capacity to accept the special order to manufacture 1,600 16-foot lengths of pipe at a price of $12.00 per pipe. Plastic Pipe’s normal selling price is $12.00 per 16-foot length. Variable manufacturing costs are $7.00 per pipe and fixed manufacturing costs are $1.00 per pipe. Plastic Pipe’s variable selling expense for its normal line of pipes is $0.50 per pipe. What would the effect on Plastic Pipe’s operating income be if the company accepted the special order? Plastic Pipe's operating income would Answer by $Answer if the order was accepted.
