Rose Manufacturing Company Had the Following Unit Costs A One-Time Customer Has Offered to Buy 2,000 Units at Direct

question 93

Multiple Choice

Rose Manufacturing Company had the following unit costs: $\begin{array}{lr}\text { Direct materials } & \$ 24 \\\text { Direct labour } & 8 \\\text { Variable factory overhead } & 10 \\\text { Fixed factory overhead (allocated) } & 18\end{array}$ A one-time customer has offered to buy 2,000 units at a special price of $48 per unit.Assume 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 by accepting the special order?

• A) a $84,000 loss
• B) a $24,000 loss
• C) a $12,000 profit
• D) a $96,000 profit

---

Definitions:

Individualistic People

Refers to those who prioritize their own goals and needs over those of the group.

Egalitarian People

Individuals who believe in the equal rights, responsibilities, and opportunities of all people, regardless of gender, race, or socioeconomic status.

Cooperative People

Individuals who are willing to work together towards common goals or interests.

Structural Holes

Concept in social networks that refers to the gaps between different clusters or groups of individuals, which can create opportunities for information brokerage or innovation.