The Lester Company is engaged in the manufacture of various types of decorations. It received an order from a customer for the manufacture of 300,000 units of a specialty item at $5.00 per unit, which is lower than the average cost of producing the units. The variable cost is estimated at $4.40 per unit. The Lester Company should:

A. accept the order without further evaluation since the selling price per unit provides a contribution to fixed costs over and above recovery of variable costs.

B. reject the offer because the average cost per unit exceeds the selling price for units in the special order.

C. evaluate the effect on regular sales of accepting this order as a lower than-regular price before rejecting or accepting the order.

D. All of the other answers are incorrect.