The Following Information Relates to a Product Produced by Creamer

question 17

Multiple Choice

The following information relates to a product produced by Creamer Company:

Fixed selling costs are $500,000 per year, and variable selling costs are $12 per unit sold.Although production capacity is 600,000 units per year, the company expects to produce only 400,000 units next year.The product normally sells for $120 each.A customer has offered to buy 60,000 units for $90 each.
If the firm produces the special order, the effect on income would be a

• A) $360,000 increase.
• B) $360,000 decrease.
• C) $540,000 increase.
• D) $540,000 decrease.

---

Definitions:

Culturally Congruent Care

Care that fits people's valued life patterns and sets of meanings generated from the people themselves. Sometimes this differs from the professionals' perspective on care.

Valued Life Patterns

Refers to behaviors, routines, and activities that individuals prioritize and find meaningful in their lives, contributing to their sense of purpose and well-being.

Health Literacy

Patients' reading and mathematics skills, comprehension, ability to make health-related decisions, and successful functioning as a consumer of health care.

High-School Diploma

A certificate awarded by educational institutions to signify completion of secondary education.