The following operating information reports the results of McKinney Companys production and sale of 16,000...
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The following operating information reports the results of McKinney Companys production and sale of 16,000 air-conditioned motorcycle helmets last year. Based on early market forecasts, McKinney expects the same results this year. Sales $2,320,000 Variable manufacturing expenses 896,000 Fixed manufacturing expenses 273,000 Variable selling and administrative expenses 112,000 Fixed selling and administrative expenses 226,000 The American Motorcycle Club has offered to purchase 1,900 helmets at a price of $61 each. McKinney has sufficient idle capacity to fill the order, which would not affect the companys cost structure or regular sales. If McKinney accepts this order, by how much will its income increase or decrease?
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