The Following Information Relates to a Product Produced by Malkovich

question 56

Multiple Choice

The following information relates to a product produced by Malkovich 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.
The incremental cost per unit associated with the special order is

• A) $64.
• B) $69.
• C) $81.
• D) $84.

---

Definitions:

Evil Spirits

Supernatural entities believed in many cultures to be malevolent forces that can influence or harm humans.

Duty To Warn

Describes the legal obligation of certain professionals to breach confidentiality in order to warn identified individuals or authorities of potential harm from a client or third party.

Psychiatric Confidentiality

The ethical and legal principle that requires healthcare providers to keep a patient's personal and medical information private unless given consent to release it.

Tort

A civil wrong that causes harm to someone, where the perpetrator might be held legally responsible to provide compensation.