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Use the following information for questions 14 and 15 : The Melrose Company produces a single product, Product C. Melrose has the capacity to produce

image text in transcribed Use the following information for questions 14 and 15 : The Melrose Company produces a single product, Product C. Melrose has the capacity to produce 70,000 units of Product C each year. If Melrose produces at capacity, the per unit costs to produce and sell one unit of Product C are as follows: The regular selling price of one unit of Product C is $100. A special order has been received by Melrose from Moore Company to purchase 7,000 units of Product C during the year. If this special order is accepted, the variable selling expense will be reduced by 75%. Melrose, however, will need to purchase a specialized machine to engrave the Moore name on each unit of Product C in the special order. The machine will cost $10,500 and will have no use after the special order is filled. order). $107,500 Increase $297,500 Increase $122,500 Increase $52,500 Increase

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