Minor Electric Has Received a Special One-Time Order for 1,500

question 67

Multiple Choice

Minor Electric has received a special one-time order for 1,500 light fixtures (units) at $5 per unit.Minor currently produces and sells 7,500 units at $6.00 each.This level represents 75% of its capacity.Production costs for these units are $4.50 per unit,which includes $3.00 variable cost and $1.50 fixed cost.To produce the special order,a new machine needs to be purchased at a cost of $1,000 with a zero salvage value.Management expects no other changes in costs as a result of the additional production.If Minor wishes to earn $1,250 on the special order,the size of the order would need to be:

• A)4,500 units.
• B)2,250 units.
• C)1,125 units.
• D)625 units.
• E)300 units.

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Definitions:

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A socialist state in Eurasia that existed from 1922 to 1991, composed of multiple Soviet republics, and was a major world power during its existence.

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The separation of students into different schools or classrooms based on race or ethnicity, a practice declared unconstitutional in the United States in 1954.