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:

Managing Personal Finances

The practice of budgeting, saving, investing, spending, and overseeing the financial resources of an individual or family.

ADLs

Activities of Daily Living; routine activities people do every day without needing assistance, including eating, bathing, dressing, toileting, walking, and continence.

IADLs

Instrumental Activities of Daily Living; tasks required for independent living, such as managing finances, transportation, meal preparation, and housekeeping.

Intellectual Competence

The capacity of an individual to think, understand complex ideas, and solve problems using cognitive abilities.