Assume that Haig Inc. normally sells its products for $23 each. A customer asks for a special order of 5,000 units at a price of $80,000, or $16 per unit. Haig has excess capacity to make 4,000 units, and this means that if it accepts this order, it will not be able to sell 1,000 units to regular customers at regular prices.

A. Find the cost per unit before accepting the special order, considering all costs.
B. Compute the operating profits at the current level of production, with a selling price of $23 each.
C. Find the total costs that Haig would have if it accepted the special order, and the cost per the new volume of 55,000 units.
D. Find the operating profit if Haig accepts the special order.
E. Should Haig accept the special order at the $16 per unit price? Explain.

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Currently, Haig is producing 50,000 units. Variable manufacturing costs $650,000 Variable marketing and administrative costs $200,000 Fixed manufacturing expenses $100,000 Fixed marketing and administrative costs $50,000