The Following Information Relates to the Jax Company for the Upcoming

question 80

Multiple Choice

The following information relates to the Jax Company for the upcoming year. The cost of goods sold includes $2,400,000 of fixed manufacturing overhead; the operating expenses include $200,000 of fixed marketing expenses.A special order offering to buy 50,000 units for $15.00 per unit has been made to Jax.Fortunately,there will be no additional operating expenses associated with the order; however,Jax is operating at full capacity.How much will operating profits increase if Jax accepts the special order?

• A)$50,000
• B)$125,000
• C)$200,000
• D)$250,000
• E)Operating profits will not increase as a result of accepting the special order.

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