The Following Information Relates to a Product Produced by Ashland

question 47

Multiple Choice

The following information relates to a product produced by Ashland Company: Fixed selling costs are $1,000,000 per year.Although production capacity is 500,000 units per year,Ashland expects to produce only 400,000 units next year.The product normally sells for $80 each.A customer has offered to buy 60,000 units for $60 each.The customer will pay the transportation charge on the units purchased.If Ashland accepts the special order,the effect on income would be a

• A)$120,000 increase
• B)$360,000 increase
• C)$840,000 increase
• D)$1,200,000 decrease

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Definitions:

Postmodernist

Pertaining to Postmodernism, a late 20th-century movement across various fields that emphasizes skepticism towards grand narratives, preferring instead to focus on individual perspective and cultural context.

Piazza d'Italia

Refers to a public square, often known as Italy Square in various cities, or specifically to the postmodern architectural project designed by Charles Moore in New Orleans.

Formalism

Strict adherence to, or dependence on, stylized shapes and methods of composition. An emphasis on an artwork’s visual elements rather than its subject.

Art Critic

An individual who evaluates and discusses the merits, faults, and value of artworks, often publishing their analyses in magazines, newspapers, or online platforms.