Walnut Has Received a Special Order for 2,000 Units of Its

question 95

Multiple Choice

Walnut has received a special order for 2,000 units of its product at a special price of $270.The product normally sells for $360 and has the following manufacturing costs: Walnut is currently operating at full capacity and cannot fill the order without harming normal production and sales.If Walnut accepts the order,what effect will the order have on the company's short-term profit?

• A)$108,000 decrease
• B)$108,000 increase
• C)$180,000 decrease
• D)zero

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Definitions:

Recession

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A diverse group of Americans of Asian descent, encompassing a variety of cultures, languages, and backgrounds.

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Substitute Product

A product or service that satisfies the same needs as another, often considered by consumers as an alternative.