Use the Following to Answer Questions

question 48

Multiple Choice

Use the following to answer questions
Naui Industries produces flowered shirts which normally sell for $24 each. The total cost to manufacture each shirt is $17, which consists of $11 of variable costs and $6 of fixed costs. A hotel chain has approached Naui with a special order for 2,000 shirts at $15 each.
-Assuming Naui presently sells all the shirts it produces,and therefore would have to cancel some of its current orders to fill the special order,Naui should:

• A)reject the offer since income will decrease by $18,000
• B)accept the offer since income will increase by $18,000
• C)reject the offer since income will decrease by $14,000
• D)accept the offer since income will increase by $14,000

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Definitions:

Cognition-Related Capacities

The abilities related to the processing of information, reasoning, memory, and problem-solving.

Long-Term Memory

The aspect of memory involved in the storage and retrieval of information over long periods, anything from hours to a lifetime.

Presbycusis

A gradual loss of hearing that occurs as people age.

Age-Related Macular Degeneration

A medical condition that results in the loss of central vision, often in older adults, due to damage to the macula, the part of the retina responsible for clear vision in direct line of sight.