Sam's club Warehouse produces 80,000 toasters per month, which is 80% plant capacity. Variable Manufacturing costs are $10 per unit. Fixed manufacturing costs are $500,000 or $5 per unit. The toasters are normally sold for $20 each. Sam's Club has an offer from Target to purchase 2,000 toasters at $11 per unit. Acceptance of this offer would not affect normal sales of this product and the additional units ca manufactured without increasing plant capacity. What should management do?

Replies: You are the Controller of this major manufacturing company. Show your work and tell the manager what the best decision is for the company in the situation presented.