Assume that Gerard Company manufactures basketballs as follows: Monthly productive capacity, 12,500 basketballs; current monthly sales, 10,000 basketballs; normal (domestic) selling price, $30 per basketball; variable manufacturing costs, $15 per basketball; fixed manufacturing costs, $5 per basketball; and total manufacturing cost, $20 per basketball. On March 10 of the current year, Gerald received an offer from an exporter for 5,000 basketballs at $12 each. Production can be spread over three months without interfering with normal production or incurring overtime costs. Pricing policies in the domestic market will not be affected. Gerard should A) accepted the special business because the sales price of $12 per unit is greater than the fixed manufacturing cost of $5 per unit B) accepted the special business because the additional revenue of $60,000 reject the special business even though the sales price of $12 per unit is less than the manufacturing cost of $20 per unit because the fixed costs are not affected by the decision and are, thus, omitted from the analysis D) reject the special business because the sales price of $12 per unit is less than the variable manufacturing cost of $20 per unit E) none of the above