Aurora Enterprises incurs costs of $38 per unit ($27 variable and $11 fixed) to make a product that normally sells for $56. A wholesaler offers to buy 3,500 units for $36 each. This special order will result in additional shipping costs of $1.15 per unit. Assuming Aurora has adequate manufacturing capacity, it should
(A) reject the offer because it will lead to a net loss of $7,000.
(B) accept the offer because it will produce net income of $31,500.
(C) accept the offer because it will produce net income of $27,475.
(D) reject the offer because it will lead to a net loss of $11,025.
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