Markson Company Had the Following Results of Operations for the Past

question 147

Multiple Choice

Markson Company had the following results of operations for the past year: A foreign company whose sales will not affect Markson's market offers to buy 2,000 units at $14 per unit.In addition to variable manufacturing costs,selling these units would increase fixed overhead by $1,600 for the purchase of special tools.If Markson accepts this additional business,its profits will:

• A)Increase by $3,500.
• B)Decrease by $5,650.
• C)Decrease by $1,600.
• D)Increase by $1,900.
• E)Decrease by $5,100.

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Definitions:

Attitude Change

The process by which an individual's feelings, beliefs, or behaviors towards a particular entity, idea, or person are altered.

Persuasion Process

A series of steps aimed at changing a person's attitude or behavior towards a topic, idea, or action, typically involving the presentation of persuasive messages.

Social Learning

A theory which suggests that people learn new behaviors by observing and imitating others, as well as through the direct experience of rewards or punishments.

Affective Commitment

An emotional or psychological attachment of an employee to their organization, which influences their willingness to continue working in the organization.