Crandle Manufacturers Inc

question 170

Multiple Choice

Crandle Manufacturers Inc.is approached by a potential customer to fulfill a one-time-only special order for a product similar to one offered to domestic customers.The company has excess capacity.The following per unit data apply for sales to regular customers:

What is the change in operating profits if the one-time-only special order for 1,030 units is accepted for $550 a unit by Crandle?

• A)$164,800 increase in operating profits
• B)$164,170 increase in operating profits
• C)$164,170 decrease in operating profits
• D)$164,800 decrease in operating profits

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