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

question 148

Multiple Choice

What is the change in operating profits if the one-time-only special order for 1,000 units is accepted for $540 a unit by Coroid?

• A) $210,000 increase in operating profits
• B) $30,000 increase in operating profits
• C) $30,000 decrease in operating profits
• D) $225,000 decrease in operating profits

---

Definitions:

Discount Rate

The interest rate charged to commercial banks and other financial institutions for loans received from the Federal Reserve's discount window.

Federal Reserve

The Federal Reserve is the central banking system of the United States, responsible for monetary policy, regulating banks, maintaining financial stability, and providing financial services.

Double Coincidence of Wants

A situation in barter economies where two parties each hold an item the other wants, making it possible for them to exchange these items directly.

100-percent-reserve Banking

A banking system in which banks are required to keep 100% of their deposits available as reserves, thus eliminating the possibility of bank runs.