Dakota Corporation Has Been Producing and Selling 42,000 Hats a Year.The

question 118

Multiple Choice

Dakota Corporation has been producing and selling 42,000 hats a year.The Dakota Corporation has the capacity to produce 52,000 hats with its present facilities.The following information is also available: $\begin{array}{lr}\text { Selling price per unit } & \$ 30 \\\text { Variable costs per unit: } \\\text { Manufacturing } & 13 \\\text { Selling and Administrative } & 7 \\\text { Fixed costs in total: } \\\text { Manufacturing } & \$ 128,000 \\\text { Selling and Administrative }& 56,000\\\end{array}$ If a special order is accepted for 10,000 hats at a price of $25 per unit, net income would _____.

• A)increase by $90,000
• B)increase by $250,000
• C)increase by $120,000
• D)decrease by $24,000

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Definitions:

Federal Government's Land Policies

Regulations and practices employed by a federal government to manage public lands, including their use, conservation, and sale.

19th Century

The period extending from January 1, 1801, through December 31, 1900, known for significant industrial, cultural, and political changes worldwide.

Economic Appraisal

It is the evaluation process used to determine the feasibility or viability of a project, primarily by assessing its costs and benefits.

American Economy

The economic system of the United States, characterized by its mixed economy, strong innovation, and high levels of consumer spending.