Wallyworld Company Manufactures a Product with the Following Costs Per

question 65

Multiple Choice

Wallyworld Company manufactures a product with the following costs per unit at the expected production level of 84,000 units: $\begin{array}{lr}\text { Direct materials } & \$ 12 \\\text { Direct labor } & 36 \\\text { Variable manufacturing overhead } & 18 \\\text { Fixed manufacturing overhead } & 24\end{array}$ The company has the capacity to produce 90,000 units. The product regularly sells for $120.
If a wholesaler offered to buy 4,500 units for $100 each, the effect of the special order on income would be a

• A)$450,000 increase.
• B)$45,000 increase.
• C)$153,000 increase.
• D)$90,000 decrease.

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Definitions:

Stand-Alone Method

A technique or intervention that is used independently rather than in combination with other methods.

Performance Aids

Tools or resources provided to employees to support the immediate application of skills or knowledge, enhancing performance efficiency and effectiveness.

Pre-Flight Checks

A series of inspections and verifications performed before an aircraft is cleared for takeoff, ensuring safety and operational readiness.

Account Upgrade

The process of improving or enhancing an existing account's features or services.