Problem
Teton Tents makes backpacking tents. It has the capacity to produce 10,000 tents per year and currently is producing and selling 7,000 tents. Normal selling price for a tent is $470. Unit-level costs are $100 for direct materials, $200 for direct labor. and $25 for other manufacturing costs. Facility-level costs of $80 are allocated to each tent. Teton has received a special order for 1,500 tents at $340 each.
Task
How much income will Teton make on the special order?