Glow Sticks Corporation manufactures and sells glow-in-the-dark necklaces for $30 each. The company has the...
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Glow Sticks Corporation manufactures and sells glow-in-the-dark necklaces for $30 each. The company has the capacity to produce 25,000 necklaces in a year, but is currently producing and selling 12,500 necklaces per year. The company currently is incurring the following costs at its current production level of 12,500 necklaces:
| Variable manufacturing costs | $ 50,000 |
| Fixed manufacturing costs | $ 90,000 |
| Unavoidable Variable selling and administrative costs | $ 75,000 |
| Fixed selling and administrative costs | $ 50,000 |
An amusement park is interested in purchasing 5,000 necklaces if it can receive a special price. This special order would not affect Glow Sticks Corporations regular sales or its cost structure. Glow Sticks Corporations profits would increase from this special order if the special order price per necklace is greater than:
A. $ 7.00
B. $ 8.00
C. $ 9.00
D. $ 10.00
E. Other $___________
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