Question: Barbelle Lighting reports the following data from this year's master budget: Per Unit Total Variable manufacturing cost $12 Fixed manufacturing cost $ 3 $24000 Fixed

Barbelle Lighting reports the following data from this year's master budget:

Per Unit Total

Variable manufacturing cost $12

Fixed manufacturing cost $ 3 $24000

Fixed selling and administrative expense $ 1 $ 8000

Barbelle's capacity is 10000 units per year, and the normal selling price is $20 per unit. A one-time-only order for 1000 units has been received at a special price of $17 per unit. The order would not disturb regular business. If the orderis accepted, overall profit will increase by:

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2. Find out if there are other reference points that can be used as reasonable alternatives.

1. Identify your reference point when making a decision based on an element of risk.

3. If there are reasonable alternatives, think about your decisions based on the different reference points and see if there are any contradictions in the decisions.