Use the Following to Answer Questions

question 75

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 has sufficient excess capacity to fill this special order without affecting sales to current customers,it should:

• A)reject the offer since income will decrease by $8,000
• B)accept the offer since income will increase by $8,000
• C)reject the offer since income will decrease by $4,000
• D)accept the offer since income will increase by $4,000

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Definitions:

Success

The achievement of a set goal, target, or intended outcome.

Evaluating Results

The process of analyzing the outcomes of actions or decisions to determine their effectiveness and learn from them.

Communication System

A structure of methods or processes by which information is transmitted and received between individuals or entities.

Project Management

The process of starting, organizing, implementing, managing, and concluding a team's tasks to attain certain objectives and fulfill defined criteria for success.