Lattimer Company Had the Following Results of Operations for the Past

question 186

Multiple Choice

Lattimer Company had the following results of operations for the past year: $$\begin{array}{l}\text { Sales } ( 15,000 \text { units at } \$ 12 ) &&\$18,000\\\text { Variable manufacturing costs } & \$ 97,500 & \\\text { Fixed manufacturing costs } & 21,000 & \\\text { Selling and administrative expenses (all fixed) } & 36,000 & ( 154,500 ) \\\text { Operating income } & & \$ 25,500\end{array}$$ A foreign company whose sales will not affect Lattimer's market offers to buy 5,000 units at $7.50 per unit. In addition to existing costs, selling these units would add a $0.25 selling cost for export fees. Lattimer's annual production capacity is 25,000 units. If Lattimer accepts this additional business, the special order will yield a:

• A) $3,750 profit.
• B) $3,250 loss.
• C) $8,250 loss.
• D) $2,000 loss.
• E) $5,000 profit.

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Definitions:

Relationships

Connections, associations, or interactions between individuals or groups, often characterized by emotional or social ties.

Aggressive Behavior

Aggressive behavior refers to actions or attitudes that are forceful, hostile, or attacking, often used to dominate or control a situation or person.

Gender

The range of characteristics pertaining to, and differentiating between, masculinity and femininity.

Individual Differences

Variations among individuals in their psychological traits, behaviors, or physical attributes.