A co league claims that morality is usually perceived and interpreted differently by different people so there is
no method to judge whether one decision is better than another. This is commonly referred to as
Studler’s Restaurant is considering a contract to supply the weal senior citizen center with 10,000 meals.
Regular sales at regular prices would be unaffected. The food cost for each meal s S3 Additional costs incurred
as a result of the contract would De variable overhead of S 50 and variable selling general and administrative
costs of S SO per meal sold. The selling price per meal would be $5, A total of $20,000 in fixed costs would
be allocated at $2 per meal. The fixed costs are part of an overall total of $500,000 in annual fixed costs
incurred regardless of the contract. What will be the effect on pretax income if Studiers takes the special
order?