What Is the Change in Operating Profits If the One-Time-Only

question 194

Multiple Choice

What is the change in operating profits if the one-time-only special order for 1,000 units is accepted for $360 a unit by Kolar?

• A)$140,000 increase in operating profits
• B)$20,000 increase in operating profits
• C)$20,000 decrease in operating profits
• D)$150,000 decrease in operating profits

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Definitions:

Real GDP

The production of goods and services valued at constant prices.

Credibility

The quality of being trusted and believed in, often based on a reputation for honesty and reliability.

Indexed

A term referring to the adjustment of income, benefits, or prices in accordance with changes in a price index, typically to preserve purchasing power.

Inflation

A sustained increase in the general price level of goods and services in an economy over a period of time, leading to a decrease in the purchasing power of money.