Merry Toy Company Makes Toy Airplanes

question 152

Multiple Choice

Merry Toy Company makes toy airplanes.One plane is an excellent replica of a 737; it sells for $8.Joyous Airlines wants to purchase 15,000 planes at $4 each to give to children flying unaccompanied.Costs per plane are as follows:

No variable marketing costs would be incurred.The company is operating significantly below the maximum productive capacity.No fixed costs are avoidable.However, Joyous Airlines wants its own logo and colors on the planes.The cost of the decals is $0.05 per plane and a special machine costing $2,000 would be required to affix the decals.After the order is complete, the machine would be scrapped.Should the special order be accepted

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Definitions:

Collectivism

A cultural value that emphasizes the importance of groups and collective action over individual achievement or identity.

In-Group Goals

Refer to the objectives or targets shared within a specific group of individuals who identify closely with each other.

Collectivism

A cultural value or social outlook emphasizing the importance of groups and collective action over individual goals and achievements.

In-Group Goals

Objectives or targets shared by members of a group that identify with each other and perceive themselves as part of the same group.