Your manufacturing facility has capacity to build 1,000 kayaks per month. Sales just called and said they have a request for a one time order of 1,500 kayaks, but they need to be produced and delivered in one month. What are your options? O Turn down the order, since you don't have space. Since this order is outside of the relevant range for your current facility, you could turn down the order, ask for a time extension for delivery or outsource the manufacturing. Since it is a one time order, adding production capacity would not be an option. You would need to add production capacity, and encourage sales to seek similar orders in the future, since fixed costs have increased. A base licensing fee of $2,000 is charged for your manufacturing facility, with an additional $2 per item for every item you produce over 1000. Your fee if you produce 5,000 items will be: O $12,000 $8,000 o $10,000