JNR Products Produces and Sells Plastic Soft Drink Cups with Specialised

question 18

Multiple Choice

JNR Products produces and sells plastic soft drink cups with specialised logos on the front.They sell the cups in batches of 500 for $125 per batch.The company has the capacity to produce 100 batches per month but averages much less.When 75 batches are sold a month,each batch has $40 worth of variable costs and $5 worth of fixed overhead costs allocated to it.The company has been approached by a local fireman's association who wishes to purchase three batches of cups for $50 per batch.If the special order were accepted,net income would:

• A) increase by $10.
• B) decrease by $225.
• C) increase by $15.
• D) increase by $30.

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Definitions:

Conditional Indorsements

Endorsements made on negotiable instruments that impose certain conditions or limitations on the transferability or payment.

Article 3

often refers to specific sections within legal documents or constitutions that can vary by context, typically detailing certain rights, rules, or procedures.

Duress

Compulsion, force, or pressure to perform an act or make a decision against one's will.

Transfer

The act of moving or conveying property, title, or rights from one entity or person to another.