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

---

Definitions:

Generic Closing

A nonspecific conclusion or sign-off used at the end of a communication that does not tailor to the recipient or context specifically.

Adjustment Messages

Communications intended to address and resolve complaints or disputes, aiming for customer satisfaction.

Claim Messages

Communications asserting a right to something, typically within a business context, such as claims for refunds or adjustments.

Legitimate Requests

Inquiries or appeals that are reasonable, justified, and in compliance with established norms or policies.