Practice problem $1.$ Special Pricing

U$-$Develop makes photographic prints

$$ Current activity level $=5,000$ prints

$$ Price $=$$$\frac{0\mathrm{.}50}{?}$ print

$VC=$$$\frac{0\mathrm{.}20}{?}$ print

$FC=$$$1,\frac{200}{?}$ month

$$ The firm received a request for $500$ prints at a "special" price of

$$\frac{0\mathrm{.}40}{?}$ print

$$ Operating profit without "special" offer $=$

$$ Operating profit with "special" offer $=$

$$ Should the firm accept the "special" offer?

Qualitative considerations: