Exhibit 7-2 Jake Company Is Considering a Special Order for 5,000 Units

question 13

Multiple Choice

Exhibit 7-2
Jake Company is considering a special order for 5,000 units at a price of $60 per unit.Jake's product normally sells for $84 per unit and has variable manufacturing costs of $45 per unit and variable selling costs of $9 per unit.Fixed manufacturing costs are $150,000 and fixed selling and administrative costs are $300,000.Jake has capacity to produce 30,000 units and is currently producing 20,000 units.If the order is accepted,,Jake will incur legal fees of $7,500 in connection with the order,but there will be no variable selling costs on the special order.
-Refer to Exhibit 7-2.What amount of additional profit or loss will be incurred if the order is accepted?

• A)$300,000
• B)$67,500
• C)($127,500)
• D)($22,500)
• E)None of the answer choices is correct.

Recognize the myths and misconceptions about anxiety disorders and their implications for stigma and treatment.

Define and understand the concept of specific phobia and differentiate it from regular fear.

Comprehend Seligman's biological preparedness theory and evaluate the evidence supporting it.

Analyze the DSM-5's categorization of Anxiety and Anxiety-Related Disorders and understand their different etiologies.

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Definitions:

Sarbanes-Oxley Act

A U.S. law enacted in 2002 to protect investors by improving the accuracy and reliability of corporate disclosures.

Financial Reporting

The process of disclosing financial results and conditions of a company to its stakeholders and the public.

Fear of Retaliation

The apprehension individuals may feel about facing adverse actions or revenge from others as a consequence of speaking out or taking a stand.

Observed Misconduct

Unethical or unacceptable behavior within an organization or environment that has been witnessed or reported.