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Business, 06.08.2021 22:00 rightstrong9827
Minor Electric has received a special one-time order for 1,200 light fixtures (units) at $10 per unit. Minor currently produces and sells 6,000 units at $11.00 each. This level represents 75% of its capacity. Production costs for these units are $12.00 per unit, which includes $8.00 variable cost and $4.00 fixed cost. To produce the special order, a new machine needs to be purchased at a cost of $600 with a zero salvage value. Management expects no other changes in costs as a result of the additional production. If Minor wishes to earn $1,000 on the special order, the size of the order would need to be:.
A. 3,200units
B. 120units
C. 650units
D. 800units
E. 1,600units
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