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Gwinnett Barbecue Sauce Corporation manufactures a specialty barbecue sauce. Gwinnett has the capacity to manufacture and sell 16,000 cases of sauce each year but is

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Gwinnett Barbecue Sauce Corporation manufactures a specialty barbecue sauce. Gwinnett has the capacity to manufacture and sell 16,000 cases of sauce each year but is currently only manufacturing and selling he following costs relate to annual operations at 15,000 coses: 15,0 Variable manufacturing cost Fixed manufacturing cost Variable selling and administrative cost Fixed selling and administrative cost Total Cost $330,000 $57,000 $60,000 $39,000 Gwinnett normally sells its sauce for $50 per case. A local school district is interested in purchasing Gwinnett's excess capacity of 1,000 cases of sauce but only if they can get the sauce for $25 per case. This special order would not affect regular sales or total fixed costs or variable costs per unit. If this special order is accepted, Gwinnett's profits for the year will: O decrease by $1,000 decrease by $11,000 decrease by $15,000 O increase by $625 Only future costs that differ between alternatives are relevant in decision making. True False

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