Golden Generator Supply Is Approached by Mr

question 4

Multiple Choice

Golden Generator Supply is approached by Mr. Stephen, a new customer, to fulfill a large one-time-only special order for a product similar to one offered to regular customers. Golden Generator Supply has excess capacity. The following per unit data apply for sales to regular customers:

If Golden Generator Supply accepts the order at $2640, what is the amount contributed towards fixed costs and profit on a sales order of 1600 units?

• A) $384,000
• B) $656,000
• C) $1,232,000
• D) $992,000

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Definitions:

Neutrality Acts

Series of laws passed between 1935 and 1939 to keep the United States from becoming involved in war by prohibiting American trade and travel to warring nations.

Arms Sale

The transaction and distribution of military weapons, equipment, and technology between countries or entities.

Freedom House

An independent watchdog organization dedicated to the expansion of freedom and democracy around the world through research, advocacy, and policy engagement.

Mahatma Gandhi

An Indian lawyer, anti-colonial nationalist, and political ethicist who led the campaign for India's independence from British rule through nonviolent resistance.