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Please answer thanka uason 3: Extra Credit astion Mar inal Cost This question is for up to 5 points of extra credit. You don't have

Please answer thanka

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uason 3: Extra Credit astion Mar inal Cost This question is for up to 5 points of extra credit. You don't have to answer question 3 and you can still score 20 out of 20 without it, but you should try. If you think like an economist and focus on Marginal Cost, Marginal Revenue and the \"Big Rule\". it will be fairly easy to answer. Ifyou think like an accountant. you will get the right answer but it will be more difcult. Ifycu think like a 1ii'ql'r'all Street fnlancial analyst, your answer will be wrong. Our company is producing 100,000 units per year and it.is operating at about ?0% of capacity. Our average total cost per unit is $3.00. Experience shows that the average total cost drops somewhat as output is ex- panded beyond 100,000 but rises again if output is expanded above 125,000 units. The normal wholesale price [i.e. the price that our company sells its product for] is $4.00 per unit. We have received an order from a privatelabel vendor for 10,000 units at a nonnegotiable [i.e. take it or leave it} price of $2.00 per unit. Because it is a privatelabel vendor, this sale would not interfere with our exist ing sales. If we accept this order, it would expand our production to 110,000 units at which point our average total cost would be $2.90 per unit. Should we accept this order at $2.00 per unit, even though they are offering us a price far below our average total cost of production? Please explain with spe cic numbers and show your calculations. Typo your answer and explanation hara

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