A company's maximum capacity is 30,000 units per month. Currently the company is only producing and selling 20,000 units. The company has received an offer to sell an additional 10,000 at a discounted price of $3 per unit. The normal selling price is $5 per unit and variable cost is $2 per unit and fixed cost is also $2 per unit.

Should the company accept the offer on financial basis?

Select one:

a. No, as the offer price is below the normal selling price

b. Yes, as the contribution per units is $3, leading to improved profit

c. Yes, as the contribution per unit is $1, leading to improved profit

d. No, it is below the total cost per unit of $4