Assuming There Is Excess Capacity, What Would Be the Effect

question 56

Multiple Choice

Assuming there is excess capacity, what would be the effect of accepting a special order for 2,000 units at a price of $64.00 per phone?

• A) Net income would decrease by $32,000.
• B) Net income would increase by $640,000.
• C) Net income would increase by $12,000.
• D) Net income would increase by $36,000.

---

Definitions:

Crowdfunding Campaign

A financing method where funds are raised through the collective effort of individuals, typically via the internet, to support a project or venture.

Valuable Information

Data or knowledge that can be useful for making decisions or understanding situations better.

Avoid in Campaign

Actions or strategies that marketers or political campaigners should steer clear from to prevent negative outcomes or backlash.

Patreon

An online platform that allows creators to receive funding directly from their fans or patrons on a recurring basis or per work of art.