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Jackson Ranch Sauce Corporation manufactures a specialty ranch sauce. Jackson has the capacity to manufacture and sell 10,000 cases of sauce each year but is

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Jackson Ranch Sauce Corporation manufactures a specialty ranch sauce. Jackson has the capacity to manufacture and sell 10,000 cases of sauce each year but is currently only manufacturing and selling 9,000. The following costs relate to annual operations at 9,000 cases: Total Cost $126,00 Variable manufacturing cost Fixed manufacturing cost $45,000 Variable selling and $18,000 administrative cost Fixed selling and $27,000 administrative cost Jackson normally sells its sauce for $30 per case. A local school district is interested in purchasing Jackson's excess capacity of 1,000 cases of sauce but only if they can get the sauce for $15 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, Jackson's profits for the year will: A) decrease by $4,000 B) decrease by $6,600 C) decrease by $1,000

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