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Problem 1: Product R is normally sold for $50 per unit. A special price of $40 is offered for the export market. The variable production cost is $30 per unit, and there are no additional variable costs. Assume there is sufficient capacity for the special order. Based on differential analysis on whether to reject or accept, the special order should be _____.
A. accepted because income will increase by $10 per unit of special order-B. accepted because income will increase by $50 per unit of special order C. reject because income will decrease by $10 per unit of special orderD. reject because income will decrease by $30 per unit of special order E. none of the above
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