Canvas Company manufactures sonars for shing boats. Its Model 70 sells for $320. Canvas produces and sells 5,600 of them per year. Cost data follow: Variable manufacturing $100 per unit Variable selling and administrative $16 per unit Fixed manufacturing $280,000 per year Fixed selling and administrative $170,000 per year Alejandro Bauista, the sales manager, wants to offer a special sale to a new customer that outts boats. He proposes a sale of 42 units at a special price of $150 per unit. Alejandro believes that it will not affect the company's regular sales in the long run because it is a one time transaction. The sale will require the normal variable costs, both selling and administrative costs and manufacturing costs, but will not impact the xed costs. The president of the company has some reservations but nally agrees to make the deal if and only if it adds a minimum of $1,500 to operating income. Based on the president's criteria, Canvas will not make the offer. 0 True 0 False