Cranberry Has Received a Special Order for 100 Units of Its

question 50

Multiple Choice

Cranberry has received a special order for 100 units of its product at a special price of $2,100.The product normally sells for $2,800 and has the following manufacturing costs: Assume that Cranberry has sufficient capacity to fill the order without harming normal production and sales.If Cranberry accepts the order,what effect will the order have on the company's short-term profit?

• A)$42,000 decrease
• B)$42,000 increase
• C)$70,000 decrease
• D)$28,000 increase

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Definitions:

Scienter

A legal term referring to the knowledge of wrongdoing or fraudulent intent in actions that deceive others.

Common Law Fraud

A form of fraud based on case law where a false representation of a material fact is made with intent to deceive and resulting in damage to the victim.

Reckless Ignorance

A state of disregarding or showing indifferent concern towards the consequences of one’s actions, often leading to harm or risks.

Embezzled Funds

Money that is dishonestly taken from an employer or organization by someone in a position of trust, typically for personal use.