Grizzly Company Grizzly Company Manufactures Footballs.The Forecasted Income Statement for the Year

Multiple Choice

Grizzly Company
Grizzly Company manufactures footballs.The forecasted income statement for the year before any special orders is as follows:

Refer to Grizzly Company.Fixed costs included in the above forecasted income statement are $1,200,000 in manufacturing CGS and $100,000 in selling expenses.Grizzly received a special order offering to buy 50,000 footballs for $7.50 each.There will be no additional selling expenses if Grizzly accepts.Assume Grizzly has sufficient capacity to manufacture 50,000 more footballs.The unit relevant cost for Grizzly's decision is

A) $8.00
B) $5.00
C) $8.75
D) $5.75