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Pharoah Company's unit costs based on 100000 units are: Varaible cost $40 Fixed cost 40 Pharoah's normal unit selling price is $175. Aspecial order from Astra International, an Indonesian firm, has been received for 5300 units at $135 per unit. Pharoah would incur an additional variable cost of $2 per unit in shipping costs on the special order. The company has available production productive capacity to accept the order. The incremental profit (loss) from accepting the order would be - $(212000). - $(174900). - $386900. - $397500.
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