Use the Following Information for the Next 3 Questions

question 63

Multiple Choice

Use the following information for the next 3 questions.
Taylor Enterprises sells its product for $40 per unit. Taylor recently received a special order from a customer for 20,000 units. Production costs per unit for regular sales are:
-Suppose that the special order price is $600,000 for all 20,000 units, but there is not sufficient capacity to fill the order; 8,000 units of regular business will be replaced by the special order if it is accepted. Should Taylor accept the special order and why?

• A) No, because profits will decrease by $56,000
• B) Yes, because profits will increase by $40,000
• C) No, because profits will decrease by $24,000
• D) No, because profits will decrease by $280,000

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Definitions:

Peripheral Nervous System

Part of the nervous system that consists of the nerves and ganglia outside of the brain and spinal cord, involved in connecting the CNS to limbs and organs.

Neurotransmitters

Chemical messengers in the nervous system that transmit signals between neurons or between neurons and muscles.

Sensor Afferents

Nerves that carry sensory signals from the periphery of the body towards the central nervous system.

A-Beta Fibers

Large sensory fibers involved in rapidly transmitting sensation and possibly in inhibiting the transmission of pain.