Walton Company Manufactures a Product with the Following Costs Per

question 18

Multiple Choice

Walton Company manufactures a product with the following costs per unit at the expected production level of 84,000 units: The company has the capacity to produce 90,000 units.The product regularly sells for $120.A wholesaler has offered to pay $110 per unit for 7,500 units.If the special order is accepted,the effect on operating income would be a

• A)$75,000 decrease.
• B)$429,000 increase.
• C)$495,000 increase.
• D)$249,000 increase.

---

Definitions:

Cross Selling

The practice of selling additional products or services to an existing customer, often to increase revenue without the cost of acquiring a new customer.

Product Development Method

An approach or set of structured steps used to guide the development of a new product from concept to market launch.

Existing Customers

Individuals or entities that have previously purchased or currently use a company's products or services.

Growth Strategies

Plans implemented by organizations to increase their size, revenue, or market share through diversification, market penetration, product development, or market development.