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Question 4 of 12 8.33 Points Hermis, Inc. produces and sells blue pens. Each blue pen has a sale price of $1 and variable
Question 4 of 12 8.33 Points Hermis, Inc. produces and sells blue pens. Each blue pen has a sale price of $1 and variable costs of $0.50. Fixed costs total $500/month. Hermis currently sells 2,000 pens per month; capacity is 2.500 pens per month. They received a one-time special order to sell an additional 1,000 pens for a sale price of $0.60 per pen. They will avoid $100 in fixed costs if they accept the special order. Should Hermis accept the special order? (Please note the slight differences in this problem). A. No, doing so will reduce profits by $150 OB. Yes, doing so will increase profits by $100 C. No, doing so will reduce profits by $50) D. Yes, doing so will increase profits by $200
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