Suppose That Regular Sales of Jigs Total 85,000 Units Per

question 138

Multiple Choice

Suppose that regular sales of jigs total 85,000 units per month.All other conditions remain the same.If Immanuel accepts the special order,the change in monthly operating income will be?

• A) $3,600 decrease.
• B) $5,400 decrease.
• C) $7,200 increase.
• D) $14,400 increase.

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Definitions:

Retained Earnings

The portion of net income not distributed as dividends but retained by the company to reinvest in its business or to pay debt.

Accounting Period

A specific duration of time for which financial statements are prepared, often annually, quarterly, or monthly, to measure financial performance.

Adjusted Trial Balance

An inventory of all accounts with their adjusted balances, utilized to compile financial statements.

Net Income

Net income refers to the total earnings or profit a company generates, calculated by subtracting all expenses, taxes, and costs from its total revenue.