Texts: Answer the following questions using the information below:
Corold Manufacturers Inc. is approached by a European customer to fulfill a one-time-only special order for a product similar to one offered to domestic customers. The company has excess capacity. The following are regular customers:
Variable costs:
Direct materials: $120
Direct labor: $60
Manufacturing support: $105
Marketing costs: $45
Fixed costs:
Manufacturing support: $135
Marketing costs: $45
Total costs: $510
Markup (50%): $255
Targeted selling price: $765
What is the change in operating profits if the one-time-only special order for 1,000 units is accepted for $540 a unit by Coroid?
A) $210,000 increase in operating profits
B) $30,000 decrease in operating profits
C) $30,000 increase in operating profits
D) $225,000 decrease in operating profits