Screen Saver Industries Has Spare Production Capacity Due to the Cancellation

question 41

Multiple Choice

Screen Saver Industries has spare production capacity due to the cancellation of a customer order. An overseas retail chain has offered the business an order for 300 units at a price of $25 each. The variable cost of the units is $20 each and the fixed costs are $3 per unit. What will be the impact on Screen Savers profit if the special order is accepted?

• A)$1,500 increase.
• B)$1,500 decrease.
• C)$600 increase.
• D)$600 decrease.