Almond Has Received a Special Order for 6,000 Units of Its

question 27

Multiple Choice

Almond has received a special order for 6,000 units of its product at a special price of $90.The product normally sells for $120 and has the following manufacturing costs: Assume that Almond has sufficient capacity to fill the order.If Almond accepts the order,what effect will the order have on the company's short-term profit?

• A)$72,000 increase
• B)$180,000 increase
• C)$252,000 decrease
• D)zero

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Definitions:

Negotiable Instrument

A document in writing that promises to pay a certain sum of money, either upon request or at a predetermined date, with the person responsible for payment identified on the document.

Delivered

Refers to goods, documents, or other items that have been transported and handed over to the person they were intended for.

Conditional Endorsement

An endorsement whereby payment can be made only on the fulfillment of a predecided condition, such as painting one’s house.

Negotiability

The ability of a document or instrument to be legally and freely transferred from one party to another.