It Costs Maker Company $22 of Variable and $15 of Fixed

question 168

Multiple Choice

It costs Maker Company $22 of variable and $15 of fixed costs to produce one Panini press which normally sells for $57. A foreign wholesaler offers to purchase 1000 Panini presses at $40 each. Maker would incur special shipping costs of $5 per press if the order were accepted. Maker has sufficient unused capacity to produce the 1000 Panini presses. If the special order is accepted what will be the effect on net income?

• A) $13000 decrease
• B) $13000 increase
• C) $22000 decrease
• D) $7000 increase

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Definitions:

LGB Community

A community comprised of individuals identifying as lesbian, gay, or bisexual, representing a segment of the larger LGBTQ+ community.

Perturbation

A disturbance or disruption in a system that causes it to move from its normal state.

Comparative Research Framework

A research approach that involves comparing two or more groups, situations, or events to identify similarities and differences.

Norm Group

A norm group is a reference population used to compare and interpret the performance or characteristics of individuals or groups in standardized testing or assessments.