The Young Company Has Gathered the Following Information for a Unit

question 3

Multiple Choice

The Young Company has gathered the following information for a unit of its most popular product:
$$\begin{array} { l r } \text { Direct materials } & \$ 12 \\\text { Direct labor } & 6 \\\text { Overhead (40\% variable) } & \underline{ 10 }\\ \text { Cost to marnufacture } & 28 \\\text { Desired markup (50\%) } &\underline{ 14 }\\ \text { Target selling price } &\underline{ \$ 42 }\\\end{array}$$
The above cost information is based on 10,000 units. A distributor has offered to buy 2,000 units at a price of $32 per unit.
- This special order would not disturb regular sales. Special packaging and other selling expenses would be an additional $0.50 per unit for the special order. If the special order is accepted, Young's operating profits will increase by:

• A) $4,000.
• B) $6,400.
• C) $8,000.
• D) $19,000.

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Definitions:

Social Referencing

The process by which individuals look to others in their environment for cues on how to react or behave in certain situations.

Self-conscious Emotions

Feelings that necessitate introspection and consciousness of oneself, including emotions like pride, embarrassment, shame, and guilt.

Self-conscious Emotions

Emotions that involve reflection on oneself, such as embarrassment, guilt, pride, and shame.

Emotional Development

The process through which individuals learn to understand, express, and regulate their emotions throughout life.