Albatross Products Had the Following Unit Costs: a One-Time

question 42

Multiple Choice

Albatross Products had the following unit costs: A one-time customer has offered to buy 2,000 units at a special price of $48 per unit. Because of capacity constraints, 1,000 units will need to be produced during overtime. Overtime premium is $8 per unit. How much additional profit (loss) will be generated by accepting the special order?

• A) $30,000 loss
• B) $4,000 profit
• C) $24,000 loss
• D) $4,000 loss

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Definitions:

Salve

A medicinal ointment used to soothe the skin or heal wounds.

Intradermal Injection

A method of administering medication by injection into the dermis, just below the skin.

Swallows

A group of birds known for their slender bodies, pointed wings, and swift, graceful flight, often seen consuming insects mid-air.

Liquid Medication

A form of medication that is administered orally in a liquid state, often prescribed for patients who find it difficult to swallow pills or tablets.