A Customer Has Requested That Lewelling Corporation Fill a Special

question 405

Multiple Choice

A customer has requested that Lewelling Corporation fill a special order for 3,100 units of product S47 for $31 a unit. While the product would be modified slightly for the special order, product S47's normal unit product cost is $22.20: Assume that direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like modifications made to product S47 that would increase the variable costs by $2.30 per unit and that would require an investment of $11,000.00 in special molds that would have no salvage value. This special order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order. The annual financial advantage (disadvantage) for the company as a result of accepting this special order should be:

• A) $36,120
• B) ($10,700)
• C) $11,200
• D) ($2,900)

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Definitions:

Personality Questionnaire

A tool or test used to assess and evaluate an individual's character traits and personality attributes.

Correlate

To have a mutual relationship or connection between two or more things, where one can be related to or affect the other.

Trait Approach

A perspective in psychology focused on identifying, describing, and measuring individual characteristics and differences in personality.

Personality

A unique set of emotional, thoughts, and behavioral patterns that define an individual.