The Lemaire Company Manufactures Wiring Tools

Multiple Choice

The Lemaire Company manufactures wiring tools.The company is currently producing well below its full capacity.The Boisvert Company has approached Lemaire with an offer to buy 10,000 tools at $1.75 each.Lemaire sells its tools wholesale for $1.85 each; the average cost per unit is $1.83,of which $0.27 is fixed costs.If Lemaire were to accept Boisvert's offer,what would be the increase in Lemaire's operating profits?

A) $800
B) $1,000
C) $1,900
D) $2,900
E) Lemaire's operating profits will not increase as a result of accepting the special order.