Aspen Enterprises makes award pins for various events. Budget information regarding the current period is

Aspen Enterprises makes award pins for various events. Budget information regarding the current period is:

Revenue (200,000 pins at $3.75) 750,000
Direct Materials 150,000
Direct Labor 220,000
Variable Manufacturing Overhead 50,000
Fixed Manufacturing Overhead 70,000

A fraternity with which Aspen has a long relationship approached Aspen with a special order for 5,000 pins at a price of $3.25 per pin. Variable costs will be the same as the current production, and the special order will not impact the rest of the company’s orders. However, Aspen is operating at capacity and will incur an additional $3,000 in fixed manufacturing overhead if the order is accepted. Based on this information, what is the differential income (loss) associated with accepting the special order?


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