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

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Definitions:

Product Brand

The identity given to a specific product or range of products by its manufacturer through branding.

Recognize and Remember

This involves the ability or process of identifying and recalling information or experiences, often used in the context of marketing to influence consumer behavior.

IMC Program

Integrated Marketing Communications Program, a strategic approach that integrates various promotional tools and marketing techniques to present a consistent message to the consumer.

Evaluation Phase

The stage in a process, project, or campaign where outcomes are assessed to determine their success and to inform future actions.