Sparrow Corporation Provided the Following Information Regarding Its One and Only

question 66

Multiple Choice

Sparrow Corporation provided the following information regarding its one and only product -tables: $\begin{array}{ll}\text { Selling price per unit } & \$ 50 \\\text { Direct materials used } & 150,000 \\\text { Direct labor } & 225,000 \\\text { Variable factory overhead } & 140,000 \\\text { Variable s elling and administrative } & 60,000\\\text { expenses }\\\text { Fixed factory overhead } & 330,000 \\\text { Fixed selling and adminis trative expenses } & 70,000 \\\text { Units produced and sold } & 20,000\end{array}$ Assuming there is excess capacity, the effect of accepting a special order for 1,000 units at a price of
$40) 00 per table is that:

• A) net income would decrease by $10,000
• B) net income would increase by $40,000
• C) net income would increase by $11,250
• D) net income would decrease by $28,750

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Definitions:

Bowel Training

A process that involves teaching individuals to have regular bowel movements at scheduled times to manage constipation or incontinence.

High-Fiber Foods

Foods rich in dietary fiber, such as fruits, vegetables, and whole grains, which are important for digestive health and can help prevent constipation.

Whole Grain Breads

Breads made from the entire kernel of grain, including the bran, germ, and endosperm, offering higher nutritional value.

Bran Pancakes

Pancakes made with bran, the outer layer of whole grains, known to be high in dietary fiber and beneficial for digestive health.