Helmsman Products Sells a Special Type of Navigation Equipment for $1300.Variable

question 171

Multiple Choice

Helmsman Products sells a special type of navigation equipment for $1300.Variable costs are $800 per unit.When a special order arrived from a foreign contractor to buy 44 units at a reduced sales price of $900 per unit,there was a discussion among the managers.The controller said that as long as the special price was greater than the variable costs,the sale would contribute to the company's profits and should be accepted as offered.The vice president,however,decided to decline the order.Which of the following statements supports the decision of the vice president?

• A)The order is not likely to affect the regular sales.
• B)The company is operating at 70% of its production capacity.
• C)The variable costs of $800 include variable costs of packing the product.
• D)The company will need to hire additional staff to execute this order.

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Definitions:

Postoperative Period

The phase following surgery during which the patient recovers, involving monitoring for complications and the promotion of healing.

Telephone Verbal Order

Medical instructions given over the phone by a healthcare provider, typically documented by another healthcare professional.

Intravenously

Pertaining to the administration of drugs or fluids directly into a vein.

Respiratory Failure

A medical condition where the respiratory system fails in its gas exchange functions, leading to inadequate oxygenation of the blood or removal of carbon dioxide.