It Costs Dryer Company $26 Per Unit ($18 Variable and $8

question 217

Multiple Choice

It costs Dryer Company $26 per unit ($18 variable and $8 fixed) to produce its product, which normally sells for $38 per unit. A foreign wholesaler offers to purchase 3,000 units at $21 each. Dryer would incur special shipping costs of $2 per unit if the order were accepted. Dryer has sufficient unused capacity to produce the 3,000 units. If the special order is accepted, what will be the effect on net income?

• A) $3,000 decrease
• B) $3,000 increase
• C) $9,000 increase
• D) $54,000 increase

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Definitions:

Action Potential

This is a temporary reversal of electrical polarization of the membrane in neurons and muscle cells, allowing for the transmission of signals.

Stimulus Transduced

The conversion of a stimulus from the environment into a form that can be processed by the nervous system.

Sensory Adaptation

The process by which sensory receptors diminish their sensitivity to continuous stimuli, allowing organisms to focus on changes in their environment.

Action Potentials

Rapid, temporary changes in the electrical charge of a cell's membrane, crucial for nerve signal transmission.