A company incurs costs of $38 per unit ($27 variable and $11 fixed) to make a product that normally sells for $56. A wholesaler offers to buy 3,500 units at $36 each. This special order will result in additional shipping costs of $1.15 per unit. Assuming the company has adequate manufacturing capacity, it should? *

reject the offer because it will lead to a net loss of $11,025

accept the offer because it will produce net income of $31,500.

accept the offer because it will produce net income of $27,475

reject the offer because it will lead to a net loss of $7,000