Oakleaf Manufacturing incurs costs of $75 ($67 variable and $8 fixed) to make a product that normally sells for $120. A customer offers to buy 4,200 units at $70 each. Assuming Oakleaf has adequate manufacturing capacity, it should
A: accept the offer because it will produce net income of $12,600.
B: accept the offer because it will produce net income of $21,000.
C: reject the offer because it will result in a net loss of $12,600.
D: reject the offer because it will result in a net loss of $21,000.
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