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Minor Electric has received a special one-time order for 900 light fixtures (units) at $5 per unit. Minor currently produces and sells 4,500 units at
Minor Electric has received a special one-time order for 900 light fixtures (units) at $5 per unit. Minor currently produces and sells 4,500 units at $6.00 each. This level represents 75% of its capacity Production costs for these units are $4.50 per unit which includes $3.00 variable cost and $150 fixed cost. To produce the special order, a new machine needs to be purchased at a cost of $475 with a zero salvage value. Management expects no other changes in costs as a result of the additional production. If Minor wishes to earn $625 on the special order the size of the order would need to be Multiple Choice 550 units 1300 units 2,200 units 180 units 250 units
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