Reggie Corporation Manufactures a Single Product with the Following Unit

question 17

Multiple Choice

Reggie Corporation manufactures a single product with the following unit costs for 1,000 units: Recently, a company approached Reggie Corporation about buying 100 units for $5,100 each.Currently, the models are sold to dealers for $7,800.Reggie Corporation's capacity is sufficient to produce the extra 100 units.No additional selling expenses would be incurred on the special order.
What is the profit earned by Reggie Corporation on the original 1,000 units?

• A) $6,900,000
• B) $8,400,000
• C) $900,000
• D) $2,640,000

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Definitions:

Category

A class or division of people or things regarded as having particular shared characteristics.

Mental Grouping

The cognitive process of categorizing objects or information based on shared attributes or relations, aiding in understanding and memory.

Prototype

An original model or first form from which other forms are copied or developed.

Category

A class or division within a system of classification in which members share certain characteristics or attributes.