It Costs Lannon Fields $28 of Variable Costs and $12

question 101

Multiple Choice

It costs Lannon Fields $28 of variable costs and $12 of allocated fixed costs to produce an industrial trash can that sells for $60. A buyer in Mexico offers to purchase 3,000 units at $36 each. Lannon Fields has excess capacity and can handle the additional production. What effect will acceptance of the offer have on net income?

• A) Decrease $12,000
• B) Increase $12,000
• C) Increase $108,000
• D) Increase $24,000

Comprehend the legal criteria for determining the legality of joint ventures under antitrust law.

Identify the regulatory role and creation of the Federal Trade Commission in enforcing antitrust laws.

Assess the significance of the rule of reason and per se analysis in antitrust cases.

Understand the amendments to antitrust laws and their impacts on corporate offenders.

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