Preston Wade
Preston Wade, a Local Craftsman, Normally Sells His

question 9

Multiple Choice

Preston Wade
Preston Wade, a local craftsman, normally sells his handcrafted wooden birdhouses for $88 each. Preston has the capacity to produce as many as 50 birdhouses a week. In a normal week, Preston makes 20 birdhouses with the following costs per unit:
$\begin{array}{lc}\text { Direct materials } & \$ 5.00 \\\text { Direct labour } & \$ 20.00 \\\text { Variable overhead } & \$ 4.00 \\\text { Fixed overhead } & \$ 2.00\end{array}$

-Refer to the Preston Wade information below.
Preston has received a special order from a local plant nursery to purchase 25 birdhouses for a price of $90 each.The nursery wishes to have the birdhouses engraved with their own logo,therefore,the order would require the rental of a special engraving tool at a cost of $200.If Preston accepts the special order,net income will increase by:

• A) $1525
• B) $1325
• C) $1275
• D) $1475

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Definitions:

Decertification Elections

A process wherein the employees of a bargaining unit vote on whether to remove the union as their collective bargaining representative.

Union Representation

The act of being represented by a labor union or trade union in negotiations and legal matters with an employer.

Card-Signing Campaign

A union organizing strategy where employees sign cards indicating their support for union representation in the workplace.

Distributive Bargaining

A negotiation strategy that involves a fixed amount of resources being divided between parties, often leading to a win-lose scenario.