Figure 17-2 Wannabee Company Manufactures a Product with the Following

question 5

Multiple Choice

Figure 17-2 Wannabee Company manufactures a product with the following costs per unit at the expected production level of 84,000 units:
The company has the capacity to produce 90,000 units. The product regularly sells for $120.
Refer to Figure 17-2. If a wholesaler offered to buy 4,500 units for $100 each, the effect of the special order on income would be a

• A) $45,000 increase.
• B) $153,000 increase.
• C) $450,000 increase.
• D) $90,000 decrease.