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BCD Inc Sells Its Products for $12 Each

Question 17

Multiple Choice

BCD Inc sells its products for $12 each. The company's volume has remained unchanged for some time at 10,000 units per month although it has spare capacity. Production costs are $10 per unit including fixed costs which average $3 per unit for the production volume. A customer has requested a special order of 2,000 of BCD's products at a special price of $9. BCD should:


A) Reject the order because there would be a loss of $2,000
B) Reject the order because the selling price of $9 is lower than the cost price of $10
C) Accept the order because there would be additional revenue of $18,000
D) Accept the order because there would be an additional profit of $2,000

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