It Costs Lannon Fields $28 of Variable Costs and $12

question 101

Multiple Choice

It costs Lannon Fields $28 of variable costs and $12 of allocated fixed costs to produce an industrial trash can that sells for $60. A buyer in Mexico offers to purchase 3,000 units at $36 each. Lannon Fields has excess capacity and can handle the additional production. What effect will acceptance of the offer have on net income?

• A) Decrease $12,000
• B) Increase $12,000
• C) Increase $108,000
• D) Increase $24,000

Understand the concept and characteristics of Machiavellian values in organizational settings.

Comprehend the principles and allocation of legitimate power within an organization.

Recognize and explain the importance of visibility and recognition for power acquisition in organizations.

Identify the various influence activities and the necessity of negotiation skills.

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Definitions:

Marijuana

A psychoactive drug derived from the Cannabis plant, used for recreational or medicinal purposes.

Inhalations

The act of taking air or gas into the lungs through breathing.

SIDS

Sudden Infant Death Syndrome, the unexplained death, usually during sleep, of a seemingly healthy baby less than a year old.

Hyperthermia

A condition characterized by an abnormally high body temperature, which can result from environmental factors or illnesses.