Reference: 23_03 Teague Plumbing Has Received a Special One-Time Order for 1,500

Reference: 23_03
Teague Plumbing has received a special one-time order for 1,500 toilets (units) at $75 per unit. Teague currently produces and sells 7,500 units at $100 each. This level represents 75% of its capacity. Production costs for these units are $75 per unit, which includes $70 variable cost and $5 fixed cost. To produce the special order, shipping costs of $10,000 will be incurred. Management expects no other changes in costs as a result of the additional production.
-If Teague wishes to earn $1,250 on the special order,the size of the order would need to be:

A) 4,500 units
B) 2,250 units
C) 1,125 units
D) 625 units
E) 300 units