A Customer Has Requested That Lewelling Corporation Fill a Special

question 25

Multiple Choice

A customer has requested that Lewelling Corporation fill a special order for 9,000 units of product S47 for $20.50 a unit. While the product would be modified slightly for the special order, product S47's normal unit product cost is $14.40: Assume that direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like modifications made to product S47 that would increase the variable costs by $5.00 per unit and that would require an investment of $36,000 in special molds that would have no salvage value. This special order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order. The annual financial advantage (disadvantage) for the company as a result of accepting this special order should be:

• A) $(9,900)
• B) $4,500
• C) $54,900
• D) $(26,100)

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Definitions:

Vaccination

The process of administering a vaccine to stimulate the body's immune system to protect against specific diseases.

Pathogenicity

The ability of a microorganism (such as a bacterium, virus, or fungus) to cause disease in a host organism.

Viral Reassortment

A process where two or more viruses infect the same host cell and exchange genetic material, potentially creating new virus strains with distinct properties.