Reference: 23_02 Parker Plumbing Has Received a Special One-Time Order for 1,500

Reference: 23_02
Parker Plumbing has received a special one-time order for 1,500 faucets (units) at $5 per unit. Parker 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 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.
-If Parker 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