Whitney Company has just completed its first year of operations.

Whitney Company has just completed its first year of operations. The company’s accountant has prepared an absorption costing income statement for the year as seen below:Sales (35,000 units at $25) $875,000Beginning Inventory 0Cost of Goods Manufactured (35,000 × $12) + $160,000 = 580,000Cost of Goods Available 580,000Ending Inventory 0Cost of Goods Sold 580,000Gross Margin 295,000Selling and Administrative Expenses 280,000Net Income $15,000The variable production costs per unit are determined as follows:Direct materials $5Direct labor 6Variable production 1Total variable production costs $12The company’s fixed production costs are $160,000 per year. The company’s selling and administrative expenses consist of $210,000 per year in fixed expenses and $2 per unit in variable expenses.Required:Prepare the company’s income statement in the contribution format.Required:Compute the amount by which the operating income of Texas Company would change if the special order was accepted.