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Question 24 7.2 pts Fred the Wonder Horse has received a request for a special order of 2.000 saddles. Fred has capacity to manufacture and

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Question 24 7.2 pts Fred the Wonder Horse has received a request for a special order of 2.000 saddles. Fred has capacity to manufacture and sell 10.000 saddles. The saddles current costs ta volume of 8,000 units is as follows: Variable manufacturing costs $150,000 Feed manufacturing costs 50,000 Variable selling and administrative costs 20,000 Fored line and administrative costs 25,000 Fred normally sells saddles for $40 each. A local ranch is interested in purchasing Fred's excess capacity of 2,000 saddles but only if they can get them for $20 each. The special order would not affect regular sales or total fixed costs or variable costs per unit, it this special order is accepted. Fred's profits for the year will: by 52.500 $37.500 by $21.250 Question 25

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