Stangle Company Manufactures Ties

question 66

Essay

Stangle Company manufactures ties.When 28,000 ties are produced,the costs per unit are:
The ties normally sell for $22 each.The company has received a special order for 2,000 ties at $10.00 per tie.The company has excess capacity.
Required:
Compute the amount by which the operating income would change if the order were accepted.

---

Definitions:

Adopted Siblings

Children brought into a family through adoption who are not biologically related but are considered siblings within their adoptive family.

Five-Factor Theory

A model proposing five core dimensions, namely openness, conscientiousness, extraversion, agreeableness, and neuroticism, as the structure of human personality.

Openness to Experience

One of the five personality traits of the Big Five personality theory, involving the appreciation for adventure, curiosity, and a range of experiences.

Agreeableness

A personality trait characterized by compassion, cooperativeness, and a desire to avoid conflict, part of the Big Five personality model.