A Company Contemplating the Acceptance of a Special Order Has

question 55

Multiple Choice

A company contemplating the acceptance of a special order has the following unit cost behavior based on 10000 units: $$\begin{array} { l r } \text { Direct materials } & \$ 4 \\\text { Direct labor } & 10 \\\text { Variable overhead } & 8 \\\text { Fixed overhead } & 6\end{array}$$ A foreign company wants to purchase 2000 units at a special unit price of $25.The normal price per unit is $40.In addition a special stamping machine will have to be purchased for $4000 in order to stamp the foreign company's name on the product.The incremental income (loss) from accepting the order is

• A)$6000.
• B)$2000.
• C)$(6000).
• D)$(2000).

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Definitions:

Semantics

The branch of linguistics concerned with the study of meaning in language.

Sentences

A group of words that express a complete thought, beginning with a capital letter and ending with a punctuation mark.

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Neurons that fire both when an individual performs an action and when they observe the same action performed by another, thought to be involved in understanding others' actions, empathy, and learning through imitation.

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Variabilities in characteristics, behaviors, and roles traditionally associated with being male or female, influenced by social, cultural, and biological factors.