Stewart Corporation manufactures solar powered calculators. The company can manufacture 1,120,000 calculators a year at a variable cost of $2,352,000 and a fixed cost of $1,232,000. Based on management's projections for next year, 952,000 calculators will be sold at the regular price of $16.00 each. A special order has been received for 232,000 calculators to be sold at a 70% discount off the regular price. Total fixed costs would be unaffected by this order. The company's net operating income will be increased as a result of the special order by: (Do not round your intermediate calculations.)
a. $371,200.
b. $1,113,600.
c. $626,400.
d. $487,200
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