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:

S-R Association Theory

A psychological theory suggesting that behavior is a result of the association between stimuli (S) and responses (R) learned through conditioning.

Social Learning

The process of learning behaviors through the observation of others, essential in understanding how people acquire new behaviors.

Operant Conditioning

An adjustment method in which behavior is strengthened or weakened by means of rewards or penalties.

Social Learning Theory

A theory that proposes individuals learn behaviors, values, and attitudes through observation of others, including modeling, imitation, and social reinforcement.