The Lemaire Company Manufactures Wiring Tools

question 20

Multiple Choice

The Lemaire Company manufactures wiring tools.The company is currently producing well below its full capacity.The Boisvert Company has approached Lemaire with an offer to buy 10,000 tools at $1.75 each.Lemaire sells its tools wholesale for $1.85 each; the average cost per unit is $1.83,of which $0.27 is fixed costs.If Lemaire were to accept Boisvert's offer,what would be the increase in Lemaire's operating profits?

• A)$800
• B)$1,000
• C)$1,900
• D)$2,900
• E)Lemaire's operating profits will not increase as a result of accepting the special order.

---

Definitions:

Remedial Measures

Actions taken to correct or rectify a problem, often after an error or mistake has been identified.

Nolo Contendere

A legal plea where the defendant does not contest the charge, which is not an admission of guilt but is treated as such for sentencing purposes.

Sentencing Court

A court that has the authority to determine and impose punishment on individuals convicted of crimes.

Federal Antitrust Laws

Laws designed to protect trade and commerce from unfair practices such as monopoly, price fixing, and other forms of market manipulation.