Aloha Swimwear has received a special order for 3,250 bikinis at a price of $60 each. The regular average selling price is $75 per suit. The unit product cost is broken down as follows: direct labor, $8.50; direct materials, $15.75; variable overhead, $3.75; and fixed overhead, $5.25. Aloha already budgeted its production at 12,000 suits. If the company has spare capacity, what will be the incremental contribution of the special order to operating profit?
A : $104,000.00
B : $38,187.50
C : $86,937.50
D : $48,750.00
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