The Buchanan Company Has Gathered the Following Information for a Unit

question 67

Multiple Choice

The Buchanan Company has gathered the following information for a unit of its most popular product: The above cost information is based on 10,000 units.A distributor has offered to buy 2,000 units at a price of $32 per unit.The distributor claims this special order would not disturb regular sales at $42.Special packaging and other selling expenses would be an additional $0.50 per unit for the special order.How many units of regular sales could be lost before this contract is not profitable?

• A)0 units.
• B)950 units.
• C)1,000 units.
• D)2,000 units.
• E)10,000 units.

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