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The production capacity is 100,000 units. Currently, 80,000 units are produced. One foreign customer offers a special order of 5,000 units. Do you reject or

The production capacity is 100,000 units. Currently, 80,000 units are produced. One foreign customer offers a special order of 5,000 units. Do you reject or accept this special order? (LO 5.1)

Reject the special order

Reject the special order if selling price > variable cost per unit

Accept the special order if selling price > variable cost per unit

Accept the special order if selling price < variable cost per unit

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