Good Buy Electronics Has Been Offered $21,600 to Produce 12,000

question 27

Multiple Choice

Good Buy Electronics has been offered $21,600 to produce 12,000 external hard drives for a customer. Good Buy has budgeted sales of 200,000 hard drives totaling $500,000, with fixed costs of $260,000 and total costs of $420,000. Assuming that Good Buy has the capacity to produce the additional units and that accepting this order will not affect any other orders, what effect will accepting the order have on Good Buy's profit?

• A) Incremental profit will increase by $21,600
• B) Incremental profit will decrease by $9,600
• C) Incremental profit will increase by $12,000
• D) Incremental profit will decrease by $3,600

---

Definitions:

Qualitative Information

Data that describes qualities or characteristics that cannot be measured numerically, often gathered through observations, interviews, and surveys.

Coordination Across Departments

The harmonious alignment and collaboration between different organizational units to achieve common goals.

Coordination

The organization of different elements or activities in a manner that enables them to work together efficiently and effectively.

Committees

Groups of individuals within an organization, designated to focus on specific tasks or make decisions.