Minnesota Company Has the Following Data About Its Only Product

question 111

Multiple Choice

Minnesota Company has the following data about its only product: Assume there is excess capacity.The company has received a special order for 1,000 units at $80.00 per unit.If the special order is accepted,what will be the effect on net income?

• A)net income increases $1,000
• B)net income increases $30,000
• C)net income decreases $80,000
• D)net income decreases $200,000

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Definitions:

Customer Relationship Management

A strategy for managing an organization's interactions with potential and current customers, utilizing data analysis about customers' history with a company to improve business relationships.

Marketers

Professionals who are responsible for promoting and selling products or services, including market research and advertising strategies.

Benefit

An advantage or positive outcome that individuals or organizations gain from using a product, service, or participating in an activity.

Customer Retention

The activities and actions companies and organizations take to reduce the number of customer defections.