Reggie Corporation Manufactures a Single Product with the Following Unit

question 95

Multiple Choice

Reggie Corporation manufactures a single product with the following unit costs for 1,000 units: Recently, a company approached Reggie Corporation about buying 100 units for $5,100 each. Currently, the models are sold to dealers for $7,800. Reggie Corporation's capacity is sufficient to produce the extra 100 units. No additional selling expenses would be incurred on the special order.
How much will income change if the special order is accepted?

• A) increase by $398,400
• B) decrease by $180,000
• C) increase by $111,600
• D) no change

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Definitions:

High-frequency Light

Light that emits or operates at high frequencies, often used in specialized applications such as UV curing or fast optical communication.

Encoders

Devices that convert motion or position into an electrical signal, often used for feedback in control systems.

Precisely Determined

Accurately established or calculated with precision, leaving no ambiguity about the result or outcome.

Servo Motors

Motors equipped with feedback systems to control the position, velocity, or torque of the motor with high precision.