Each Month Fig Company Produces 11,000 Units of a Product

question 77

Multiple Choice

Each month Fig Company produces 11,000 units of a product that sells for $18 per unit, and has variable costs of $12 per unit.Total fixed costs for the month are $77,000.A special order is received for 5,000 units at a price of $14 per unit.Fig Company has adequate capacity for the special order.Relevant to the decision of whether to accept or reject this special order is the _____.

• A)difference between the offered price and the variable cost per unit
• B)difference between the current fixed cost per unit and the expected fixed cost per unit
• C)difference between the current sales price and the proposed sales price
• D)all of these answers are correct

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Definitions:

Corporate Social Responsibility

A business strategy where firms incorporate considerations related to society and the environment into their operational activities and stakeholder engagements.

Stakeholders

Individuals, groups, or organizations that have an interest or concern in a business or project and can be affected by its outcomes.

End-Recipients

The final users or beneficiaries of a product, service, or information.

Triple Bottom Line

A business framework that encourages companies to focus equally on social, environmental, and financial performance, often summarized as people, planet, and profits.