Pluto Incorporated Provided the Following Information Regarding Its Single Product

question 142

Multiple Choice

Pluto Incorporated provided the following information regarding its single product: The regular selling price for the product is $80. The annual quantity of units produced and sold is 40,000 units (the costs above relate to the 40,000 units production level) . The company has excess capacity and regular sales will not be affected by this special order. There was no beginning inventory.
What would be the effect on operating income of accepting a special order for 3,500 units at a sale price of $55 per product?

• A)Increase by $115,500
• B)Increase by $269,500
• C)Decrease by $115,500
• D)Decrease by $269,500

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Definitions:

Cognitive-Behavioral

A psychotherapeutic approach that addresses dysfunctional emotions, behaviors, and cognitions through a goal-oriented, systematic process.

Psychotherapies

Diverse forms of treatment aimed at improving an individual's mental health through psychological means rather than medical.

Conduct Disorder

A mental disorder diagnosed in childhood or adolescence characterized by a long-term pattern of violating the rights of others or societal norms.

Conduct Disturbances

A range of antisocial behaviors exhibited by children and adolescents, characterized by aggression and defiance.