Suppose There Is Ample Idle Capacity to Produce the Units

question 37

Multiple Choice

Suppose there is ample idle capacity to produce the units required by the overseas customer and the special discounted price on the special order is $76.40 per unit.By how much would this special order increase (decrease) the company's net operating income for the month?

• A) ($5,000).
• B) ($17,000).
• C) $13,400.
• D) $48,000.