Martin Incorporated Provided the Following Information Regarding Its Only Product

question 68

Multiple Choice

Martin Incorporated provided the following information regarding its only product: Assuming there is excess capacity, what would be the effect on operating income of accepting a special order for 1200 units at a sale price of $49 per product? The 1200 units would not require any variable selling and administrative expenses. (NOTE: Assume regular sales are not affected by the special order. Round any intermediary calculations to the nearest cent.) )

• A)Decrease by $24,468
• B)Decrease by $34,332
• C)Increase by $24,468
• D)Increase by $34,332

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Definitions:

Hodgepodge

A confused or disorderly mixture of various elements.

Reliability

The consistency of a research study or measuring test over time.

Administration

The organized process of managing and executing psychological assessments, including preparation, execution, and interpretation of results.