It Costs Lannon Fields $14 of Variable Costs and $6

question 3

Multiple Choice

It costs Lannon Fields $14 of variable costs and $6 of allocated fixed costs to produce an industrial trash can that sells for $30.A buyer in Mexico offers to purchase 3,000 units at $18 each.Lannon has excess capacity and can handle the additional production.What effect will acceptance of the offer have on net income?

• A)decrease $4,000
• B)increase $4,000
• C)increase $54,000
• D)increase $12,000

---

Definitions:

Irreparable Harm

Damage or injury that is permanent, irreversible, or incapable of being rectified or compensated for by any means.

Achievement

The successful completion or reaching of a goal through effort or skill, recognized by society or one's self.

Beliefs and Attitudes

Internal thoughts and feelings that shape one's worldview and reactions to various situations.

Parents Influence

The impact that parents have on their children’s development, behavior, and choices through their actions, teachings, and interactions.