The Following Information Relates to a Product Produced by Creamer

question 56

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.
The incremental cost per unit associated with the special order is

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

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Definitions:

Quartet

In NMR spectroscopy, a signal that is split into four peaks, indicating an atom's hydrogen atoms are coupled to three equivalent neighboring hydrogens.

Doublet

A pattern in NMR spectroscopy indicating two adjacent protons that are not equivalent, leading to two closely spaced signals.

IR

Infrared spectroscopy, a technique used for identifying organic compounds through their unique absorption of infrared light.

NMR Data

Information obtained from nuclear magnetic resonance spectroscopy that provides details about the structure of molecules based on their magnetic properties.