A Customer Has Requested That Lewelling Corporation Fill a Special

question 182

Multiple Choice

A customer has requested that Lewelling Corporation fill a special order for 9,000 units of product S47 for $20.50 a unit.While the product would be modified slightly for the special order,product S47's normal unit product cost is $14.40:
Assume that direct labor is a variable cost.The special order would have no effect on the company's total fixed manufacturing overhead costs.The customer would like modifications made to product S47 that would increase the variable costs by $5.00 per unit and that would require an investment of $36,000 in special molds that would have no salvage value.This special order would have no effect on the company's other sales.The company has ample spare capacity for producing the special order.The annual financial advantage (disadvantage) for the company as a result of accepting this special order should be:

• A) $(9,900)
• B) $4,500
• C) $54,900
• D) $(26,100)

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Definitions:

Slave Codes

Laws established in the American colonies and later in the Southern states that defined the status of slaves and the rights of masters, severely restricting slaves' freedoms.

Enslavement

The state or condition of being a slave; the practice of making someone a slave through force, coercion, or capture.

Justification

The process of proving something to be right or reasonable, often used in contexts of moral, ethical, or legal debates.

Civil Ceremonies

Non-religious ceremonies conducted by a government official or civil celebrant.