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The Sparkle Company manufactures affordable costume jewelry. At the beginning of the year, the Sparkle Company received a request from an oversees customer who would

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The Sparkle Company manufactures affordable costume jewelry. At the beginning of the year, the Sparkle Company received a request from an oversees customer who would like to purchase 10,000 necklaces for a Breast Cancer Fund Raising event; due to the large order the customer has offered to purchase each necklace for $10 (current selling price is $20 per unit). If the Sparkle Company accepts the special order, then an additional $2,000 in shipping costs and $5,000 in custom packaging/wrapping will be incurred. The company currently has the capacity to produce the 10,000 necklaces without incurring any additional fixed costs for factory space (current production 150,000 necklaces each year - maximum capacity is 200,000 units a year). Current Selling Price $20.00 Direct Labor per unit $2.00 Direct Materials per unit $6.00 Fixed Cost per unit $7.00 Total Cost per Unit $15.00 Assume the special order is accepted. Which of the following statements is true? Current Selling Price $20.00 Direct Labor per unit $2.00 Direct Materials per unit $6.00 Fixed Cost per unit $7.00 Total Cost per Unit $15.00 Assume the special order is accepted. Which of the following statements is true? 1) The Sparkle Company will report a profit of $18,000 by accepting the special order. O2) The Sparkle Company will report a loss of $50,000 by accepting the special order. 3) The Sparkle Company will report a profit of $13,000 by accepting the special order. 4) The Sparkle Company will report a profit of $20,000 by accepting the special order

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