Seville Company Manufactures a Product with a Unit Variable Cost

question 37

Multiple Choice

Seville Company manufactures a product with a unit variable cost of $42 and a unit sales price of $75.Fixed manufacturing costs were $80,000 when 10,000 units were produced and sold, equating to $8 per unit.The company has a one-time opportunity to sell an additional 1,500 units at $55 each in an international market which would not affect its present sales.The company has sufficient capacity to produce the additional units.How much is the relevant income effect of accepting the special order?

• A)$63,000
• B)$7,500
• C)$50,000
• D)$19,500

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Definitions:

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The process by which an individual's characteristic patterns of thinking, feeling, and behaving are established and change over time.

Erikson

refers to Erik Erikson, a developmental psychologist known for his theory on the psychosocial development of humans, highlighting eight stages that span from infancy to late adulthood.

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