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Gundy Company Manufactures a Product with the Following Costs Per

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Gundy Company manufactures a product with the following costs per unit at the expected production of 30,000 units: Gundy Company manufactures a product with the following costs per unit at the expected production of 30,000 units:   The company has the capacity to produce 30,000 units. The product regularly sells for $40. A wholesaler has offered to pay $32 per unit for 2,000 units. If the firm chooses to accept the special order and reject some regular sales, the effect on operating income would be A)  a $20,000 increase. B)  a $16,000 decrease. C)  a $4,000 increase. D)  $-0-. The company has the capacity to produce 30,000 units. The product regularly sells for $40. A wholesaler has offered to pay $32 per unit for 2,000 units.
If the firm chooses to accept the special order and reject some regular sales, the effect on operating income would be


Definitions:

Two Position

A term referring to devices or controls that have two distinct settings or positions, such as on/off switches or binary valves.

Measured Medium

The specific substance or entity whose properties or characteristics are being quantified or monitored.

Dead Zone

A region in a control system's response where small input changes produce no output change, leading to inaccuracy or unresponsiveness.

Pilot Control Device

A manual or automatic apparatus used to start, stop, or regulate the operation of machines via control circuits.

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