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A local car cearer nas offered to buy 500 tires for an upcoming promotion to launch the new line of sports cars he will carry

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A local car cearer nas offered to buy 500 tires for an upcoming promotion to launch the new line of sports cars he will carry Although the normal selling price is $10 per tire, the dealer has offered $8 each, citing the large volume of the order as the reason for cutting the price. There is no change in fixed costs 37. If Berry Tire Co. accepts this order, the effect on the company's income, assuming regular sales are unaffected, is a of $ 38. The fixed overhead of $2 per tire a. is irrelevant in making the decision because the fixed costs per unit are unaffected b. is irrelevant in making the decision because the total fixed costs are unaffected c. will increase to above $1 per tire if the order is accepted d. will increase to above $1 per tire if the order is not accepted

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