Twisty Taffy Company produces bags of saltwater taffy that are sold in cases and retailed at seaside resorts. Its normal selling price is $30 per case; each case contains 15 bags of taffy. The variable costs are $15 per case. Fixed costs are $25,000 for a normal production run of 5,000 cases per month. Twisty Taffy received a special order from an existing customer which it could accommodate without displacing current capacity. The order was for 1,500 units at a special price of $17 per unit; a variable shipping cost of $2 per unit is not included in the variable costs and would be applicable for this order. Should the order be accepted, and what is its impact on operating income?

It should be rejected; there is zero profit on the transaction.

It should be accepted; there is zero profit so the company is indifferent in the decision.

It should be accepted; although there is minimal profit on the transaction, it is for an existing customer.

The answer cannot be determined from the information given.