Able Company's Unit Manufacturing Cost Is: Variable Costs $\quad \$ 50$

question 114

Multiple Choice

Able Company's unit manufacturing cost is: Variable Costs $\quad \$ 50$
Fixed Costs $\quad 25$ A special order for 2000 units has been received from a foreign company.The unit price requested is $55.The normal unit price is $80.If the order is accepted unit variable costs will increase by $2 for additional freight costs.If the order is accepted incremental profit (loss) will be

• A)$(46000).
• B)$6000.
• C)$(40000).
• D)$10000.

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Definitions:

Placebo Effect

A phenomenon where a person experiences a perceived improvement in condition due to the belief in the efficacy of a treatment, despite it having no therapeutic effect.

Overconfidence

A cognitive bias characterized by an individual's belief that they are more capable or knowledgeable than they actually are.

Predicting World Events

The process of forecasting significant occurrences on a global scale based on analysis of data and trends.

Almost Right

A situation or answer that is not exactly correct but is very close to being accurate or satisfactory.