Braizen, Inc

question 37

Multiple Choice

Braizen, Inc.produces a product with a $30 per-unit variable cost and an $80 per-unit sales price.Fixed manufacturing overhead costs are $100,000.The firm has a one-time opportunity to sell an additional 1,000 units at $60 each that would not affect its current sales.Assuming the company has sufficient capacity to produce the additional units, how would the acceptance of the special order affect net income?

• A)Income would decrease by $30,000.
• B)Income would increase by $30,000.
• C)Income would increase by $140,000.
• D)Income would increase by $40,000.

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Definitions:

Long-term Cultures

Societal or organizational cultures that prioritize and value long-term commitments, perseverance, and sustainability over short-term gains.

Honeymoon

A period of harmony and happiness following the commencement of a new project, job, or phase in life, often characterized by optimistic and positive feelings.

Irritation/Anger

Emotional responses typically characterized by annoyance or frustration, which can escalate to anger if not managed.

Small Victories

Achieving short-term, manageable goals that contribute to long-term objectives and boost morale among team members.