A company receives a special one-time order for 3,000 units of its product at $15 per unit. The company has excess capacity and it currently produces and sells the units at $20 each to its regular customers. Production costs are $13.50 per unit, which includes $9 of variable costs. To produce the special order, the Chapter 25 Capital Budgeting and Managerial Decisions 1063 company must incur additional fixed costs of $5,000. Should the company accept the special order?

a. Yes, because incremental revenue exceeds incremental costs.

b. No, because incremental costs exceed incremental revenue.

c. No, because the units are being sold for $5 less than the regular price.

d. Yes, because incremental costs exceed incremental revenue.

e. No, because incremental cost exceeds $15 per unit when total costs are considered.