Potter Has Received a Special Order for 10,000 Units of Its

question 93

Multiple Choice

Potter has received a special order for 10,000 units of its product at a special price of $24. The product normally sells for $32 and has the following manufacturing costs: Potter is currently operating at full capacity and cannot fill the order without harming normal production and sales. If Potter accepts the order, what effect will the order have on the company's short-term profit?

• A) $64,000 decrease
• B) $64,000 increase
• C) $80,000 decrease
• D) $16,000 increase

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Definitions:

Developmental Psychology

The branch of psychology that studies how people grow and change throughout the life span.

Basic Research

Research that focuses on a general understanding of basic principles that can be applied to many different problems

Applied Research

Research aimed at solving practical problems rather than acquiring knowledge for knowledge's sake.

Ideals

Concepts or standards of perfection that individuals or groups strive to achieve or emulate.