The Manager at the Plymouth Manufacturing Company Reported a Current

Multiple Choice

The manager at the Plymouth Manufacturing Company reported a current production level of 22,000 units per month.The managerial accountant reported the following unit-level costs:

The manager reported monthly sales of 20,000 units.The Salem Company contacted the manager at Plymouth Manufacturing and inquired about the purchase of 1,525 units at $2.10 per unit.The manager noted that current sales would not be affected by the one-time-only special order,and variable marketing/distribution costs would not be incurred with the special order.What is the change in operating profits at Plymouth Manufacturing Company's if the special order is accepted?

A) $1,525 decrease
B) $1,525 increase
C) $1,784.25 decrease
D) $1,784.25 increase
E) There is no change in operating profits