Reference: 09-03
Immanuel Company Has Just Obtained a Request for a Special

question 88

Multiple Choice

Reference: 09-03
Immanuel Company has just obtained a request for a special order of 6,000 jigs to be shipped at the end of the month at a selling price of $7 each. The company has a production capacity of 90,000 jigs per month with total fixed production costs of $144,000. At present, the company is selling 80,000 jigs per month through regular channels at a selling price of $11 each. For these regular sales, the cost for one jig is: $$\begin{array} { | l | c | } \hline \text { Variable production cost } & \$ 4.60 \\\hline \text { Fixed production cost } & 1.80 \\\hline \text { Variable selling expense } & 1.00 \\\hline\end{array}$$ If the special order is accepted, Immanuel will not incur any selling expense; however, it will incur shipping costs of $0.30 per unit.
-If Immanuel accepts this special order, the change in the monthly net operating incom? will be a:

• A)$14,400 increase.
• B)$1,800 increase.
• C)$3,600 increase.
• D)$12,600 increase.

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Definitions:

Early Intervention

Strategies and therapies applied at the initial stage of a disorder or condition to prevent further progression or to mitigate its impact.

Mental Health Promotion

Strategies and actions to enhance the mental health and well-being of individuals or communities.

Population-Focused

An approach or intervention aimed at addressing the health or social needs of a specific group or population rather than individuals.

Ecological Perspective

a viewpoint in social science that emphasizes the complex interrelations between individuals and their environment.