Black Tool Company Has a Production Capacity of 1500 Units

Multiple Choice

Black Tool Company has a production capacity of 1500 units per month,but current production is only 1250 units.The manufacturing costs are $70 per unit and marketing costs are $10 per unit.Doug Hall offers to purchase 250 units at $80 each for the next five months.Should Black accept the one-time-only special order if only absorption-costing data are available?

A) No,since only the employees will benefit.
B) No,the company will only break even.
C) Yes,good customer relations are essential.
D) Yes,since operating profits will most likely increase.