Minor Electric has received a special one-time order for 1,500
light fixtures (units) at $5 per unit. Minor 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 $3.00 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. Should
the company accept the special order?

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