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Business, 05.05.2020 07:32 fluffyanimal456

Minor Electric has received a special one-time order for 1,500 light fixtures (units) at $7 per unit. Minor currently produces and sells 7,500 units at $8.00 each. This level represents 75% of its capacity. Production costs for these units are $7.50 per unit, which includes $5.00 variable cost and $2.50 fixed cost. To produce the special order, a new machine needs to be purchased at a cost of $525 with a zero salvage value. Management expects no other changes in costs as a result of the additional production. If Minor wishes to earn $775 on the special order, the size of the order would need to be: Multiple Choice 2,600 units. 350 units. 650 units. 1,300 units. 214 units.

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