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BE CAREFUL THIS MAY LOOK LIKE THE SAME QUESTION AS ABOVE BUT SOME OF THE INFORMATION HAS CHANGED. Davis Manufacturing Corporation provided the following cost

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BE CAREFUL THIS MAY LOOK LIKE THE SAME QUESTION AS ABOVE BUT SOME OF THE INFORMATION HAS CHANGED. Davis Manufacturing Corporation provided the following cost data: The relevant production range for the data shown in the table below is between 10,000 and 30,000 unit. The normal selling price of each unit that the company produces is $40.00. The additional total fixed cost of producing more than 30,000 units is $600,000. The total variable cost per unit increases by $10.00 when more than 30,000 units are produced. Currently, the company has produced and sold 14,000 units during the current year. The average size of an order from a regular customer is currently between 500 and 1,500 units. Chicago Manufacturing, a new customer that Davis has been trying to get to buy its products for the last 5 years, has agreed to purchase 5,000 at a price of $19.00 per unit. Davis should accept this order: True False

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