Use the Following Information for the Next 3 Questions

question 63

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 that the special order price is $600,000 for all 20,000 units, but there is not sufficient capacity to fill the order; 8,000 units of regular business will be replaced by the special order if it is accepted. Should Taylor accept the special order and why?

• A) No, because profits will decrease by $56,000
• B) Yes, because profits will increase by $40,000
• C) No, because profits will decrease by $24,000
• D) No, because profits will decrease by $280,000

---

Definitions:

Celiac Trunk

A major artery that supplies the abdominal organs including the liver, stomach, and spleen with blood.

Superior Mesenteric Artery

A major artery that supplies blood to a large portion of the lower intestine, including the jejunum, ileum, and colon.

Left Gastric Artery

An artery that arises from the celiac trunk and supplies blood to the stomach's lesser curvature.

Splenic Artery

The artery that branches off the abdominal aorta to provide the spleen with oxygen-rich blood.