Reality Planet Ltd

question 154

Multiple Choice

Reality Planet Ltd. sells product a model star at a price of $48 a unit. The per-unit cost data are: direct materials $15, direct labour $10, and overhead $12 (50% fixed and 50% variable) . Reality Planet has sufficient capacity to accept a special order for 40,000 units just received. Selling costs associated with this order would be $3 per unit. At a selling price of $36 per unit, the operating profit will:

• A) Increase by $144,000
• B) Increase by $80,000
• C) Increase by $120,000
• D) Increase by $200,000

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Definitions:

Nuclear Family

A family unit consisting of two parents (mother and father) living with their children, considered the smallest and most basic social unit in many societies.

School-Age Children

Children in the age range typically required to attend school, generally from about 5 to 18 years old.

Preconventional Level

Refers to the first level of moral reasoning in Kohlberg's theory, characterized by understanding morality based on consequences and personal benefit.

Moral Development

The process by which individuals learn and apply moral codes, values, and understandings of right and wrong across their lifespan.