Figure 9-9
Boone Products Had the Following Unit Costs -Refer to Figure 9-9

question 6

Multiple Choice

Figure 9-9
Boone Products had the following unit costs: $\begin{array}{lr}\text { Direct materials } & £ 24 \\\text { Direct labour } & 10 \\\text { Variable factory overhead } & 8 \\\text { Fixed factory overhead (allocated) } & 18\end{array}$
-Refer to Figure 9-9. A one-time customer has offered to buy 2,000 units at a special price of £48 per unit. Because of capacity constraints, 1,000 units will need to be produced during overtime. Overtime premium is £8 per unit. How much additional profit (loss) will be generated by accepting the special order?

• A)£30,000 loss
• B)£4,000 loss
• C)£24,000 loss
• D)£4,000 profit

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Definitions:

Bacteria

Microscopic, single-celled organisms found in diverse environments, capable of causing disease or contributing to health.

White Pulp

Part of the spleen consisting of lymphatic nodules and diffuse lymphatic tissue; associated with arteries.

Spleen

Large lymphatic organ in the upper part of the abdominal cavity on the left side between the stomach and diaphragm, composed of white and red pulp. It responds to foreign substances in the blood, destroys worn-out red blood cells, and is a storage site for blood cells.

Immune Response

The body's defense mechanism against pathogens, involving recognition and destruction of harmful substances or organisms.