An organization produces 10,000 tennis rackets per month, which is 80 percent of plant capacity. Variable manufacturing costs are $4 per unit, and fixed manufacturing costs are $40,000. The rackets are sold to customers at $12 each. The organization received a request for a special order of 200 rackets for $7 per unit. The special order would not impact daily sales of the product, and the additional units could be produced without increasing factory capacity. Which of the following statements is true regarding this scenario?
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