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

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