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Minor Electric has received a special one-time order for 800 light fixtures (units) at $3...

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Accounting

Minor Electric has received a special one-time order for 800 light fixtures (units) at $3 per unit. Minor currently produces and sells 8,000 units at $5.00 each. This level represents 80% of its capacity. Production costs for these units are $2.00 per unit, which includes $1.00 variable cost and $1.00 fixed cost. To produce the special order, a new machine needs to be purchased at a cost of $1,200 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?

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