Boone Products Had the Following Unit Costs: a One-Time Customer

question 37

Multiple Choice

Boone Products had the following unit costs: A one-time customer has offered to buy 1,000 units at a special price of £48 per unit. Assuming that sufficient unused production capacity exists to produce the order and no regular customers will be affected by the order, how much additional profit (loss) will be generated from the special order?

• A) £12,000 loss
• B) £14,000 profit
• C) £48,000 profit
• D) £6,000 profit

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Definitions:

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