Randy Plumbing has received a special one-time order for 2,800 toilets (units) at $74 per unit. Randy currently produces and sells 17,250 units at $99 each. This level represents 75% of its capacity. Production costs for these units are $74 per unit, which includes $69 variable cost and $10 fixed cost. To produce the special order, shipping costs of $20,000 will be incurred. Management expects no other changes in costs as a result of the additional production.
If Randy wishes to earn $1,900 on the special order, the size of the order would need to be:
560 units.
2,190 units.
950 units.
8,760 units.
4,380 units.