Minor Electric Has Received a Special One-Time Order for 1,500

Minor Electric has received a special one-time order for 1,500 light fixtures (units) at $5 per unit.Minor currently produces and sells 7,500 units at $6.00 each.This level represents 75% of its capacity.Production costs for these units are $4.50 per unit,which includes $3.00 variable cost and $1.50 fixed cost.To produce the special order,a new machine needs to be purchased at a cost of $1,000 with a zero salvage value.Management expects no other changes in costs as a result of the additional production.Should the company accept the special order?

A) No,because net income would decrease by $1,500.
B) No,because net income would decrease by $2,000.
C) Yes,because net income would increase by $7,500.
D) Yes,because net income would increase by $2,000.
E) No,because net income would decrease by $5,500.

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