Globe Manufacturing Company has just obtained a request for

Globe Manufacturing Company has just obtained a request for aspecial order of 12,000 units to be shipped at the end of the current year ata discount price of $7.00 each. The company has a production capacity of90,000 units per year. At present, Globe is only selling 80,000 units peryear through regular channels at a selling price of $11.00 each. Globe’s perunit costs at an 80,000 unit level of production and sales are as follows:Variable sellingand administrative expense will drop to $0.30 per unit on the special orderunits. The special order has to be taken in its entirety. This means that byaccepting the special order, Globe will be forced to not sell 2,000 units toits regular customers. variable production cost…$4.60Fixed production cost…$1.80Variable selling and administration expense…$1.00fixed selling and administration expense…$.45Required: 30 PTSIf Globe acceptsthis special order, by what amount will its net operating income increase ordecrease? SHOW YOUR COMPUTATIONS.