Lattimer Company had the following results of operations for the past year:
Sales (15,000 units at $11.60) $174,000
Variable manufacturing costs $91,500 Fixed manufacturing costs $15,000 Selling and administrative expenses (all fixed) $30,000 ($136,500)
Operating income $37,500
A foreign company whose sales will not affect Lattimer's market offers to buy 4,200 units at $6.70 per unit. In addition to existing costs, selling these units would add a $0.17 selling cost for export-fees.
If Lattimer accepts this additional business, the special order will yield a:
a. $1,806 profit
b. $2,520 profit
c. $1,680 loss
d. $6,594 loss
e. $2,394 loss