After Introducing the Product,the Company Finds That It Has Excess

question 82

Multiple Choice

After introducing the product,the company finds that it has excess capacity.A foreign dealer has offered to purchase 5,000 units of the product at a special price of $21 per unit.This sale would not disturb regular business.If the special price is accepted on the 5,000 units,the effect on total net income for the year should be:

• A) $45,000 increase
• B) $30,000 increase
• C) $5,000 increase
• D) $26,250 decrease

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Definitions:

Challenge

A task or situation that requires a person to use their skills and efforts to overcome difficulties.

Illusion of Transparency

The illusion of transparency is the tendency to overestimate the extent to which one's internal states, such as emotional or mental processes, are apparent to others.

Spotlight Effect

The belief that others are paying more attention to one's appearance and behavior than they really are.

Behavioral Mimicry

The subconscious imitation of another person’s behavior, gestures, or speech, often in social situations to increase rapport.