Use the Following Information for Questions
a Company's Unit $\begin{array}{l}\text { Variable costs }&\$75 \\\text { Fixed costs }&30\end{array}$

question 28

Multiple Choice

Use the following information for questions
A company's unit costs based on 100,000 units are: $\begin{array}{l}\text { Variable costs }&\$75 \\\text { Fixed costs }&30\end{array}$ The normal unit sales price per unit is $165. A special order from a foreign company has been received for 5,000 units at $135 a unit. In order to fulfill the order, 3,000 units of regular sales would have to be foregone.
-The incremental profit (loss) from accepting the order would be

• A) $30,000.
• B) $(150,000).
• C) $180,000.
• D) $(90,000).

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Definitions:

GDP

Gross Domestic Product, the total market value of all final goods and services produced within a country in a specific time period, serving as a broad measure of economic activity.

Economy's Production

The total value of all goods and services produced within an economy over a specific time period.

Goods and Services

The physical items (goods) and activities (services) that satisfy human wants and needs and are offered in the marketplace for purchase.

GDP

Gross Domestic Product signifies the total monetary value of all goods and services produced within a country's boundaries over a predetermined time frame, reflecting the nation's economic health.