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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.

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