A Company Contemplating the Acceptance of a Special Order Has

question 68

Multiple Choice

A company contemplating the acceptance of a special order has the following unit cost behavior, based on 10,000 units: A foreign company wants to purchase 2,000 units at a special unit price of $25. The normal price per unit is $40. In addition, a special stamping machine will have to be purchased for $4,000 in order to stamp the foreign company's name on the product. The incremental income (loss) from accepting the order is

• A) $6,000.
• B) $2,000.
• C) $(6,000).
• D) $(2,000).

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Definitions:

Glaciers

Slow-moving rivers of ice formed by the accumulation and compaction of snow on mountains or near poles, which shape the land through erosion.

Sea Level

The average height of the ocean's surface between the high and low tide, used as a standard in reckoning land elevation or sea depths.

Ice Block

A large piece of ice, typically extracted from an ice field or frozen body of water.

Water Level

The height of the water surface in a given body of water, such as a river, lake, or ocean, which can vary due to various factors including precipitation and human intervention.