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:

Landfill Inventory

The accumulated waste material that is stored in a designated disposal site, typically managed to minimize its impact on the environment.

Supply Chain Sustainability

An approach to managing supply chains that emphasizes environmental stewardship, social responsibility, and economic viability for the long term.

Waste Generation

The production of unwanted materials or substances that result from human activities or industrial processes.

Landfill Inventory

The accumulation of waste materials that are disposed of in landfills, potentially accounting for future reuse or recycling opportunities.