Wannabee Company Manufactures a Product with the Following Costs Per

question 20

Multiple Choice

Wannabee Company manufactures a product with the following costs per unit at the expected production level of 84,000 units: $$\begin{array} { l r } \text { Direct materials } & \$ 12 \\\text { Direct labor } & 36 \\\text { Variable manufacturing overhead } & 18 \\\text { Fixed manufacturing overhead } & 24\end{array}$$ 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)$45,000 increase.
• B)$153,000 increase.
• C)$450,000 increase.
• D)$90,000 decrease.

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Definitions:

Rational Behaviors

Actions or thoughts that are consistent with logic or reasoned thinking.

Irrational Behaviors

Actions that lack reason or logical thinking, often driven by emotions rather than rational decision making.

Cognitive Theories

Theories in psychology that emphasize mental processes like perception, memory, and problem-solving as the key to understanding behavior.

Measurable Behaviors

Observable and quantifiable actions or responses that can be empirically assessed or evaluated.