Napa Company Manufactures Computers

question 1

Multiple Choice

Napa Company manufactures computers. The following cost information for the manufacture of one computer has been compiled: If Napa receives a special order for 500 computers at a price of $550, what will be the effect on the company's profit if the order is accepted? (Assume that other variables do not change.)

• A) Increase of $15,000
• B) Increase of $35,000
• C) Increase of $75,000
• D) Decrease of $5,000

Calculate and compare returns on different financial investments over various periods.

Understand how to calculate simple interest and the maturity value of promissory notes.

Apply money market investment principles, including yield rates and discounts.

Calculate the proceeds and selling prices of non-interest-bearing promissory notes.