A company receives a special one-time order for 3,000 units of its product at ($ 15) per
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A company receives a special one-time order for 3,000 units of its product at \(\$ 15\) per unit. The company has excess capacity and it currently produces and sells the units at \(\$ 20\) each to its regular customers. Production costs are \(\$13.50\) per unit, which includes \(\$ 9\) of variable costs. To produce the special order, the company must incur additional fixed costs of \(\$ 5,000\). Should the company accept the special order?
a. Yes, as revenue exceeds costs.
b. No, as costs exceed revenue.
c. No, as the offer is \(\$ 5\) less than the regular price.
d. Yes, as costs exceed revenue.
e. No, because costs exceed \(\$ 15\) per unit when total costs are considered.
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