Able Company's Unit Manufacturing Cost Is $\begin{array}{lr}\text { Variable Costs } & \$ 50 \\\text { Fixed Costs } & 25\end{array}$

question 61

Multiple Choice

Able Company's unit manufacturing cost is: $\begin{array}{lr}\text { Variable Costs } & \$ 50 \\\text { Fixed Costs } & 25\end{array}$ A special order for 2,000 units has been received from a foreign company. The unit price requested is $55. The normal unit price is $80. If the order is accepted, unit variable costs will increase by $2 for additional freight costs. If the order is accepted, incremental profit (loss) will be

• A)$(46,000).
• B)$6,000.
• C)$(40,000).
• D)$10,000.

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Definitions:

Practical Intelligence

An aspect of intelligence involving the ability to adapt to, shape, or select environments, solving everyday problems through practical reasoning and experience.

Savant Syndrome

A condition where an individual with significant mental disabilities demonstrates certain abilities far in excess of average.

Set Of Distinct Abilities

A collection of unique skills or competences that an individual possesses, which vary from person to person.

Cognitive Processing

The intellectual activity involved in learning and grasping concepts through reasoning, experiencing, and the sensory system.