Boone Products Had the Following Unit Costs: a One-Time

question 147

Multiple Choice

Boone Products had the following unit costs: A one-time customer has offered to buy 2,000 units at a special price of $48 per unit. Because of capacity constraints, 1,000 units will need to be produced during overtime. Overtime premium is $8 per unit. How much additional profit or loss will be generated by accepting the special order?

• A) $30,000 loss
• B) $4,000 loss
• C) $24,000 loss
• D) $4,000 profit

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