The Following Information Relates to a Product Produced by Creamer

question 148

Multiple Choice

The following information relates to a product produced by Creamer Company: Fixed selling costs are $500,000 per year, and variable selling costs are $12 per unit sold. Although production capacity is 600,000 units per year, the company expects to produce only 400,000 units next year. The product normally sells for $120 each. A customer has offered to buy 60,000 units for $90 each.
The incremental cost per unit associated with the special order is

• A) $84.
• B) $81.
• C) $69.
• D) $64.

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Definitions:

Cultural Exposure

The experience of encountering and interacting with customs, traditions, and practices different from one's own.

Self-Verification Strategies

Techniques individuals use to convince others to view them as they view themselves, in order to confirm their self-concept.

Reflexive Behavior

Behavior that an individual displays as a reaction to the behavior of others, often as part of a social interaction.

Social Identity

An individual's sense of who they are based on their group membership(s), such as social class, family, nationality, etc.