Annually, xyz produces and sells 5,000 units of a product at its maximum capacity. The selling price is $600 per unit. The variable production cost is $150 per unit, and the fixed production cost is $300 per unit.

A customer has requested a special one-time order for 400 units of the product for $350 each. Accepting this special order will mean a loss of regular sales. However, this special order would not affect the total fixed cost. What is the financial advantage (disadvantage) for Bothell to accept this special order?

Multiple Choice

• ($100,000)

• ($56,000)

• ($80,000)

• $80,000