Use the Following Information for the Next 3 Questions

question 124

Multiple Choice

Use the following information for the next 3 questions.
Taylor Enterprises sells its product for $40 per unit. Taylor recently received a special order from a customer for 20,000 units. Production costs per unit for regular sales are:
-Suppose the special order price is $600,000 for all 20,000 units, and assume that Taylor has sufficient capacity to fill the special order. Should it be accepted?

• A) Yes, because profits will increase by $120,000
• B) No, because profits will decrease by $200,000
• C) No, because profits will decrease by $40,000
• D) Yes, because profits will increase by $40,000