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

Comprehend the principles of energy efficiency and power management in computing devices.

Familiarize with the evolution and operation of user interface technologies.

Recognize the role of operating systems in managing hardware and software resources.

Understand the applications and implications of mobile and wearable technology in the context of digital convergence.

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Definitions:

Relevant Encounter

An interaction or meeting that has significant importance or relevance to a particular topic, goal, or situation.

Epidemiology

The study and analysis of the distribution (who, when, and where) and determinants of health and disease conditions in defined populations.

Insurance

A financial product providing protection against potential future losses or damages in exchange for a premium payment.

Numeric

Relating to, consisting of, or represented by numbers.