Micro Enterprises has the capacity to produce 10,000 widgets a month, and currently makes and sells 9,000 widgets a month. Widgets normally sell for $6 each, and cost an average of $5 to make, including fixed costs. The monthly fixed costs are $18,000. Coyote Corp. has offered to buy 1,000 widgets at $4 each. On this information alone, should Micro accept the offer?
A. No, because it will lose $1 per unit
B. No, because it will lose $2 per unit
C. No, because it will exceed capacity
D. Yes, because it makes $1 per unit in the short run
E. Unable to determine