Bradley Inc

question 50

Multiple Choice

Bradley Inc. has the capacity to make 100,000 windows. Bradley is currently operating at 100% capacity. The windows usually sell for $20.00 each. Costs for each window follow: The Army has offered to buy 10,000 windows for $12.00 each for barracks. Bradley should:

• A)Reject the offer because it currently does not have enough capacity to accept the order.
• B)Reject the order because the company will lose $20,000 on the order.
• C)Accept the offer because the company will realize $20,000 in additional contribution margin.
• D)Accept the offer because the company will realize $40,000 in additional contribution margin.

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Definitions:

Torsion Strain

Internal strain in a molecule caused by the electron cloud repulsions when bonds are twisted away from their preferred angles.

Carbon-Carbon Bond

A chemical bond between two carbon atoms, which can vary in nature from single to triple bonds.

Complete Combustion

A combustion reaction where the fuel is entirely consumed, producing only carbon dioxide, water, and energy, assuming ample oxygen supply.

Decane

A saturated hydrocarbon with the formula C10H22, consisting of a chain of ten carbon atoms.