Zephram Corporation Has a Plant Capacity of 200,000 Units Per

question 131

Multiple Choice

Zephram Corporation has a plant capacity of 200,000 units per month. Unit costs at capacity are:

Current monthly sales are 190,000 units at $30.00 each. Q, Inc., has contacted Zephram Corporation about purchasing 2,500 units at $24.00 each. Current sales would not be affected by the one-time-only special order. What is Zephram's change in operating profits if the one-time-only special order is accepted?

• A) $11,000 increase
• B) $31,500 increase
• C) $22,500 increase
• D) $49,000 increase

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