When Trevor received a special$-$order request from Noah, he initially turned it down because the bid price of $$11$ per unit was only half of his usual selling price. It was also lower than his product costs $($unknown to Noah$)$:

Manufacturing cost per unit: $$8($includes $$2$ of fixed$-$MOH$)$

Selling and administrative costs per unit: $$3($all variable$-$MOH$)$

If Trevor has enough capacity to take on this special order, did he make a good decision to pass on this deal, or did he make a mistake? Explain.

A$.$ The quantitative analysis suggests that Trevor should have accepted the special order. The incremental benefits are larger than the incremental costs by $$1$ per unit. Assuming all other qualitative aspects of the offer were fair, and it truly is a special$-$order situation, Trevor should have accepted this special order.

B$.$ The quantitative analysis suggests that Trevor should not have accepted the special order. The incremental costs are larger than the incremental benefits by $$3$ per unit. Assuming all other qualitative aspects of the offer were fair, and it truly is a special$-$order situation, Trevor should not have accepted this special order.

c$.$ The quantitative analysis suggests that Trevor should have accepted the special order. The incremental benefits are larger than the incremental costs by $$2$ per unit. Assuming all other qualitative aspects of the offer were fair, and it truly is a special$-$order situation, Trevor should have accepted this special order.

d$.$ None of these.