The Minton Company Has Gathered the Following Information for a Unit

question 118

Multiple Choice

The Minton Company has gathered the following information for a unit of its most popular product:
$$\begin{array} { | l | r | } \hline \text { Direct materials } & \$ 6 \\\hline \text { Direct labor } & 3 \\\hline \text { Overhead (40\% variable) } & - 5 \\\hline \text { Cost to manufacture } & 14 \\\hline \text { Desired markup (60\%) } & - 7 \\\hline \text { Target selling price } & 21 \\\hline\end{array}$$
The above cost information is based on 4,000 units.A foreign distributor has offered to buy 1,000 units at a price of $16 per unit.This special order would not disturb regular sales.Variable shipping and other selling expenses would be an additional $1 per unit for the special order.If the special order is accepted,Minton's operating profits will increase by:

• A) $1,000.
• B) $1,600.
• C) $2,000.
• D) $4,000.

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Definitions:

Sleep Spindles

A type of rapid, rhythmic brain activity observed during stage 2 of NREM sleep that plays a role in learning and memory.

REM Sleep

Rapid Eye Movement sleep; a sleep phase associated with vivid dreams, characterized by rapid movement of the eyes.

REM Rebound

The phenomenon where there is an increase in REM sleep after being deprived of it.

REM Rebound

The phenomenon where there is an increase in REM (Rapid Eye Movement) sleep following a period of REM sleep deprivation.