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Companies sometimes receive special offers at prices lower than their normal selling prices. We evaluate these special offers by computing their income effects.

Knowledge Check $01$: Cold Company makes large containers of ice cream at a variable cost of $$10$ per container. It usually sells the container for $$15.$ Cold Company is operating at less than full capacity. A potential new customer is requesting containers of ice cream at a selling price of $$12.$ Fixed overhead will not change regardless of whether this order is accepted. Should Cold Company accept the special order?

A$.$ Yes, there will be a $$12$ increase in income for every new container sold.

B$.$ No$,$ there will be a $$3$ decrease in income for every new container sold.

C$.$ No$,$ there will be a $$5$ decrease in income for every new container sold.

D$.$ Yes, there will be a $$2$ increase in income for every new container sold.