Black Tool Company has a production capacity of 1,500 units per month, but currentproduction is only 1,250 units. The manufacturing costs are $60 per unit and marketing costs are$16 per unit. Doug Hall offers to purchase 250 units at $76 each for the next five months. ShouldBlack accept the one-time-only special order if only absorption-costing data are available?A) Yes, good customer relations are essential.B) No, the company will only break even.C) No, since only the employees will benefit.D) Yes, since operating profits will most likely increase.Answer:Explanation:D) Since the $60 absorption cost per unit is most likely not all variable costs andsince the entire $16 per unit of marketing costs may not be incurred, operating profits will mostlikely increase.D