Blue spruce manufacturing has an annual capacity of 80,200 units per year. currently, the company is making and selling 78,000 units a year. the normal sales price is $102 per unit, variable costs are $65 per unit, and total fixed expenses are $2,000,000. an out-of-state distributor has offered to buy 5,500 units at $75 per unit. blue spruce's cost structure should not change as a result of this special orderby how much will marston's income change if the company accepts this order?

Powell company began the 2018 accounting period with $40,000 cash, $86,000 inventory, $60,000 common stock, and $66,000 retained earnings. during 2018, powell experienced the following events: sold merchandise costing $58,000 for $99,500 on account to prentise furniture store. delivered the goods to prentise under terms fob destination. freight costs were $900 cash. received returned goods from prentise. the goods cost powell $4,000 and were sold to prentise for $5,900. granted prentise a $3,000 allowance for damaged goods that prentise agreed to keep. collected partial payment of $81,000 cash from accounts receivable. required record the events in a statements model shown below. prepare an income statement, a balance sheet, and a statement of cash flows. why would prentise agree to keep the damaged goods?