Merced Corporation Is Considering Adding a New Product Line

question 91

Multiple Choice

Merced Corporation is considering adding a new product line. Market research indicates that sales revenue for the new line would be $80,000 for 35,000 units. Variable costs would be $1.70 per unit; direct fixed costs, $0.40 per unit; and indirect fixed costs, $0.50 per unit. If Merced added the new line, its income would:

• A) Increase by $20,500
• B) Increase by $6,500
• C) Decrease by $5,000
• D) Decrease by $11,000

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Definitions:

Applicant Rejection

The process of informing a job candidate that they have not been selected for a position.

Legal Complaints

Formal allegations or claims made in a court of law, stating that some wrongdoing has occurred and seeking legal remedy.

Future Positions

Refers to potential job roles or opportunities that may become available in the future.

Discriminatory Practices

Unfair treatment of individuals or groups based on characteristics such as race, gender, age, or religion.