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Brilliant, Inc

question 34

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Brilliant, Inc. reported the following results from the sale of 24,000 units of IT-54:
Brilliant, Inc. reported the following results from the sale of 24,000 units of IT-54:   Extra Company has offered to purchase 3,000 IT-54s at $16 each. Brilliant has available capacity, and the president is in favor of accepting the order. She feels it would be profitable because no variable selling costs will be incurred. The plant manager is opposed because the  full cost  of production is $17. Which of the following correctly notes the change in income if the special order is accepted? A)  $3,000 decrease. B)  $3,000 increase. C)  $12,000 decrease. D)  $12,000 increase. E)  None of the answers is correct.
Extra Company has offered to purchase 3,000 IT-54s at $16 each. Brilliant has available capacity, and the president is in favor of accepting the order. She feels it would be profitable because no variable selling costs will be incurred. The plant manager is opposed because the "full cost" of production is $17. Which of the following correctly notes the change in income if the special order is accepted?

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Definitions:

Properly Set

Correctly established or arranged according to specified guidelines or principles.

Expectancy Theory

A motivational theory that suggests an individual's behavior is determined by their expected outcomes or rewards, based on the belief that effort leads to performance and performance leads to rewards.

High Instrumentality

The belief that performance will lead directly to desirable outcomes, an essential concept in expectancy theory of motivation.

High Valence

A condition or characteristic that is highly valued or desired by individuals, often motivating actions or behaviors toward achieving a specific outcome.

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