The Following Information Relates to a Product Produced by Creamer

question 80

Multiple Choice

The following information relates to a product produced by Creamer 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.
Suppose the firm produces the special order.What would be the effect on Creamer's annual income?
$\begin{array}{lr}\text { Direct materials } & \$ 24 \\\text { Direct labour } & 15 \\\text { Variable overhead } & 30 \\\text { Fixed overhead } & 18 \\\text { Unit cost } & \$ 87\end{array}$

• A)a $360,000 increase
• B)a $360,000 decrease
• C)a $540,000 increase
• D)a $540,000 decrease

Understand the types and characteristics of aneurysms, specifically around the detection of abdominal aortic aneurysms.

Identify hypertension as a primary risk factor for stroke and kidney damage.

Recognize the structure and function of human blood vessels, specifically the unique properties of capillaries.

Understand the effects of congestive heart failure (CHF) on the heart's ventricles.

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Definitions:

Incandescent Bulb

A type of lighting that works by heating a filament inside a bulb until it glows, producing light.

Inert Gas

A gas which does not undergo chemical reactions under a set of given conditions, often used as a protective atmosphere.

Tachometer

An instrument used to indicate shaft speed.

Engine Rpm

Revolutions per minute of an engine; a measure of the engine's speed.