# Below is a projected income statement for the coming month (Based on selling 30,000 units) DollarsPer unit Salesrevenue\$600,000\$600,000/30,000 units…

Below is a projected income statement for the coming month (Based on selling 30,000 units)

Dollars             Per unit

Sales revenue                                      \$600,000        \$600,000/30,000 units = \$20.00

Variable cost of goods sold                 (225,000)      \$225,000/30,000 units = \$7.50

Variable marketing costs                      (150,000)     \$150,000/30,000 units = \$5.00

Contribution margin                            225,000        \$225,000/30,000 units = \$7.50

Fixed cost of goods sold                     (135,000)

Fixed marketing costs                         ( 60,000)

Operating Income                               \$ 30,000

The company has a special (one-time) order for 5,000 units to be purchased at a sales price of \$11 per unit. Should they sell these 5,000 units for \$11?

In addition, no marketing costs will be necessary for the 5,000 one-time-only special order.