Paragraph Styles Special Order The Sarah Bates company sells a single product for $40 per unit. At an operating level of 10,000 units, variable costs are $20 per unit and fixed costs $10 per unit. The Company has been offered a price of $25 per unit on a special order of 3,000 units by Julia Newsome company, which would use its own brand name on the item. If Bates accepts the order, materials cost will be $4 less per unit than for regular production. However, special equipment costing $5,000 would be needed to process the order; the equipment would then be discarded. Assuming the volume remains within the relevant range, prepare an analysis of differential revenue and costs to determine whether Bates should accept the special offer