Minor Electric has received a special one-time order for 900 light fixtures (units) at $17 per unit. Minor currently produces and sells 4,500 units at $18.00 each. This level represents 75% of its capacity. Production costs for these units are $22.50 per unit, which includes $15.00 variable cost and $7.50 fixed cost. To produce the special order, a new machine needs to be purchased at a cost of $775 with a zero salvage value. Management expects no other changes in costs as a result of the additional production. If Minor wishes to earn $1,525 on the special order, the size of the order would need to be:
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Minor Electric has received a special one-time order for 900 light fixtures (units) at $17 per unit....
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