Ellis Instruments incurs costs of $13 per unit ($8 variable and $5 fixed) to make a widget it normally sells for $24. Ellis has received two special offers: Wholesaler A offers to buy 12,000 units at $18 each and Wholesaler B offers to buy 14,500 units at $16 each. Assuming Ellis has the capacity to accept only one of these offers, which one should it accept?
A.Ellis should accept offer A because it will result in $4,000 more in net income than offer
B. B.Ellis should accept offer A because it will result in $44,000 less in lost revenue than offer B.
C.Ellis should accept offer B because it will result in $16,000 more in revenue than offer A.
D.Ellis should accept offer A because it will result in $16,500 more in net income than offer B.