Menagerie Products Had the Following Unit Costs A One-Time Customer Has Offered to Buy 900 Units at r

question 86

Multiple Choice

Menagerie Products had the following unit costs: $$\begin{array} { l r } \text { Direct materials } & \$ 24 \\\text { Direct labor } & 10 \\\text { Variable factory overhead } & 8 \\\text { Fixed factory overhead (allocated) } & 18\end{array}$$ A one-time customer has offered to buy 900 units at a special price of $47 per unit. Assuming that sufficient unused production capacity exists to produce the order and no regular customers will be affected by the order, how much additional profit (loss) will be generated from the special order?

• A)$6,000 loss
• B)$4,500 profit
• C)$12,500 profit
• D)$42,300 profit

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Definitions:

Cared For By Others

Being in a situation where one's needs, either due to age, illness, or disability, are attended to by someone else.

Role Strain

The stress or tension experienced by an individual when conflicting demands are made on their role in a social setting.

Effective Discipline

Methods and strategies used to teach children right from wrong, helping them to learn acceptable behavior and understand consequences.

Many Rules

The existence or imposition of numerous regulations, guidelines, or norms within a given context.