Question 16 of 30 < > View Policies Current Attempt in Progress Sheridan makes child-size backpacks for a total cost of $10 per unit ($6 per unit variable cost and $4 per unit fixed cost) and a unit selling price of $15. The company has been recently contacted by a local nonprofit to make the 580 child-size backpacks for a unit selling price of $10 per unit. Sheridan currently has available capacity to make and sell the 580 units without adding additional production capacity. What should Sheridan do regarding the special order proposal from the local nonprofit and why? -/1 E O Accept the special order since it is being performed for a nonprofit cause, and the $5 loss can be written off as a charitable contribution. O Reject the special order since the company would lose $5 per unit. O Accept the special order since it will increase operating income by $2320 or $4 per unit for 580 units. O Reject the special order since the special-order price is equal to the total cost to make. Save for Later Attempts: 0 of 1 used Submit Answer