Boone Products Had the Following Unit Costs: a One-Time

question 60

Multiple Choice

Boone Products had the following unit costs: A one-time customer has offered to buy 2,000 units at a special price of $48 per unit.Because of capacity constraints, 1,000 units will need to be produced during overtime.Overtime premium is $8 per unit.How much additional profit (loss) will be generated by accepting the special order?

• A) $30,000 loss
• B) $4,000 loss
• C) $24,000 loss
• D) $4,000 profit

---

Definitions:

Aggregate Household Wealth

The total net worth held by the households in an economy, combining all assets minus liabilities.

Durable Goods

Things that last at least a year or two.

Nondurable Goods

Goods that are expected to last or be used for less than one year.

Consumption of Services

The action of using services such as healthcare, education, and utilities, which contributes to an individual's standard of living.