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1. The following monthly financial data is for Tennis Company, a maker of tennis balls. Tennis makes 50,000 tennis balls each month. Total monthly data

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1. The following monthly financial data is for Tennis Company, a maker of tennis balls. Tennis makes 50,000 tennis balls each month. Total monthly data at Per 50,000 unit tennis balls Sales revenue $2.00 100,000 Variable costs 17500 Contribution S165 S 82,500 margin Fixed costs Profit 72.000 S 10.500 Tennis received an offer from a tennis club to purchase 15,000 tennis balls at S150 per ball. Variable costs per pair will remain at S0.35. Any special orders will result in reduced sales to regular customers However, fixed costs will not change as a result of the special order Which of the following statements describes the best course of action for Tennis Company? O Reject the special order since profit will be $7,500 greater without the special order Accept the special order since fixed costs will not change. Accept the special order since it will yield S1.15 per tennis ball in profit O Reject the special order since the company will experience a total net loss as a result of the special order None of the answer choices is correct

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