The Metal Shop produces 1.8 million metal fasteners a year for industrial use. At this level of production, its total fixed costs are $278,000 and its total costs are $522,000. The firm can increase its production by 5 percent, without increasing either its total fixed costs or its variable costs per unit. A customer has made a one-time offer for an additional 50,000 units at a price per unit of $0.10. Should the firm sell the additional units at the offered price? Why or why not?

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