Question: Please Help Question 34 1 pts We have received a special one-time order for 1,500 light xtures {units} at $5 per unit. We currently produce
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Question 34 1 pts We have received a special one-time order for 1,500 light xtures {units} at $5 per unit. We currently produce and sells 7,500 units at $6.00 each. This level represents 15% of its capacity. Production costs for these units are $4.50 per unit, which includes $3.00 variable cost and $1.50 xed cost. To produce the special order. a new machine needs to be purchased at a cost of$1,000 with a zero salvage value. Management expects no other changes in costs as a result of the addltlonal production. Should the company accept the special order? 0 No, because additional production would exceed capacity. 0 No. because incremental costs exceed incremental revenue. 0 Yes, because incremental revenue exceeds incremental costs. C) Yes, because incremental costs exceed incremental revenues. O No, because the incremental revenue is too low
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