The following information relates to the Klear Company for the upcoming year, based on 300,000 units: Amount Per Unit Sales $ 9,000,000 $ 30.00 Cost of goods sold 7,200,000 24.00 Gross margin 1,800,000 6.00 Operating expenses 675,000 2.25 Operating profits $ 1,125,000 $ 3.75 The cost of goods sold includes $3,000,000 of fixed manufacturing overhead; the operating expenses include $450,000 of fixed marketing expenses. A special order offering to buy 50,000 units for $25.00 per unit has been made to Klear. Fortunately, there will be no additional fixed costs associated with the order and Klear has sufficient capacity to handle the order. Required: a. How much will operating profits increase if Klear accepts the special order? b. Assume that Klear is operating at full capacity. How much will operating profits change if Klear accepts the special order?

On january 2, 2016, twilight hospital purchased a $94,800 special radiology scanner from bella inc. the scanner had a useful life of 4 years and was estimated to have no disposal value at the end of its useful life. the straight-line method of depreciation is used on this scanner. annual operating costs with this scanner are $106,000. approximately one year later, the hospital is approached by dyno technology salesperson, jacob cullen, who indicated that purchasing the scanner in 2016 from bella inc. was a mistake. he points out that dyno has a scanner that will save twilight hospital $26,000 a year in operating expenses over its 3-year useful life. jacob notes that the new scanner will cost $111,000 and has the same capabilities as the scanner purchased last year. the hospital agrees that both scanners are of equal quality. the new scanner will have no disposal value. jacob agrees to buy the old scanner from twilight hospital for $40,500. if twilight hospital sells its old scanner on january 2, 2017, compute the gain or loss on the sale. prepare an incremental analysis of twilight hospital.