JNR Products produces and sells plastic soda cups with specialized logos on the front. They sell the cups in batches of 500 for $125 per batch. The company has the capacity to produce 100 batches per month but averages much less. When 75 batches are sold a month, each batch has $40 worth of variable costs and $5 worth of fixed overhead costs allocated to it. The company has been approached by a
local fireman's association who wishes to purchase three batches of cups for $50 per batch. If the special order were accepted, net income would:
A) increase by $10.
B) decrease by $225.
C) increase by $15.
D) increase by $30.
D
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