Wade Company Is Operating at 75% of Its Manufacturing Capacity

question 134

Multiple Choice

Wade Company is operating at 75% of its manufacturing capacity of 140,000 product units per year.A customer has offered to buy an additional 20,000 units at $32 each and sell them outside the country so as not to compete with Wade.The following data are available: $\begin{array}{lrr}\text { Costs at 75\% capacity: } & \text { Per Unit } & \text { Total } \\\text { Direct materials } & \$ 12.00 & \$ 1,260,000 \\\text { Direct labor } & 9.00 & 945,000 \\\text { Overhead (fixed and variable) } & 15.00 & 1,575,000 \\\text { Totals } & \$ 36.00 & \$ 3,780,000 \\\hline \hline\end{array}$ In producing 20,000 additional units,fixed overhead costs would remain at their current level but incremental variable overhead costs of $6 per unit would be incurred.What is the effect on income if Wade accepts this order?

• A)Income will decrease by $4 per unit.
• B)Income will increase by $4 per unit.
• C)Income will increase by $5 per unit.
• D)Income will decrease by $5 per unit.
• E)Income will increase by $11 per unit.

Acknowledge the influence of cultural and social aspects on depression.

Understand strategies for assisting individuals at risk of suicide.

Comprehend the connection between neurotransmitter activity and mood disorders.

Understand the major characteristics and symptoms of various psychological disorders.

---

Definitions:

MHz

Megahertz; a unit of frequency equal to one million cycles per second, often used to measure the speed of computer processors and transmission rates.

Cloud Storage

Cloud storage refers to a service model in which data is maintained, managed, backed up remotely, and made available to users over the Internet.

Server

A computing configuration that delivers program applications, data assistance, or resources to client computers across a network.

Uniform Resource Locator (URL)

The address of a resource on the Internet, indicating its location on a network and a method for retrieving it.