The Company Has an Opportunity to Secure a Special Order

question 365

Multiple Choice

The company has an opportunity to secure a special order of 800 units if it is willing to drop the selling price on these units to $13.Costs of securing the special order would be $1,000.The special order would not affect the company's regular sales.If the special order is accepted,what will be the impact on the company's overall operating income?

• A) Increase $3,200.
• B) Increase $2,200.
• C) Increase $3,800.
• D) Remain the same.Incremental profit = 800 * (13 - 9)- 1,000 = $2,200 increase

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Definitions:

Federal Labor Law

Laws established by the federal government to regulate the relationship between employees, employers, and unions.

Closed Shops

describes workplaces that require employees to be members of a specific labor union both before and during their employment, a practice now largely illegal in the U.S.

Agency Shops

Workplaces where employees must pay union dues regardless of their membership status, often found in collective bargaining agreements.

Union Shops

Workplaces where all employees must join a union within a certain time period after being hired.