Minor Electric Has Received a Special One-Time Order for 1,500

question 67

Multiple Choice

Minor Electric has received a special one-time order for 1,500 light fixtures (units) at $5 per unit.Minor currently produces and sells 7,500 units at $6.00 each.This level represents 75% of its capacity.Production costs for these units are $4.50 per unit,which includes $3.00 variable cost and $1.50 fixed cost.To produce the special order,a new machine needs to be purchased at a cost of $1,000 with a zero salvage value.Management expects no other changes in costs as a result of the additional production.If Minor wishes to earn $1,250 on the special order,the size of the order would need to be:

• A)4,500 units.
• B)2,250 units.
• C)1,125 units.
• D)625 units.
• E)300 units.

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Definitions:

Collectivist Cultures

Societies that prioritize the group over individual desires or identities, emphasizing family and community cohesion.

Individualist Cultures

Societies that prioritize the needs and rights of the individual over the group, often emphasizing personal achievement and independence.

Signs Of Humility

Behaviors or attitudes that show a modest or low view of one's own importance; often characterized by a lack of ego.

Defer To Others

The act of submitting or yielding to the judgment, opinion, or preference of another individual or group.