Highbank Company Is Operating at 80% of Its Manufacturing Capacity

question 46

Essay

Highbank Company is operating at 80% of its manufacturing capacity of 62,000 product units per year. A customer has offered to buy an additional 10,000 units at $17 each and sell them outside the country so as not to compete with Highbank. The following data are available:
In producing 10,000 additional units fixed overhead costs would remain at their current level but incremental variable overhead costs of $0.75 per unit would be incurred. What is the effect on total income if Highbank accepts this order?

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Definitions:

Externalizing Disorder

Externalizing disorder refers to a group of disorders characterized by outward-directed behaviors, such as aggression, hyperactivity, defiance, or conduct problems, often observed in children and adolescents.

ADHD

Attention-Deficit/Hyperactivity Disorder (ADHD) is a neurodevelopmental disorder characterized by a pattern of inattention, hyperactivity, and impulsivity that interferes with functioning or development.

Risk Factors

Elements or conditions that increase the likelihood of a negative outcome, such as disease, injury, or other health issues.

Parent Training Programs

Interventions designed to teach parents effective strategies for managing their children's behavior problems, improving family dynamics and child outcomes.