Rojo Corporation Has Received a Request for a Special Order

question 109

Multiple Choice

Rojo Corporation has received a request for a special order of 8,000 units of product W68 for $27.20 each. Product W68's unit product cost is $18.50, determined as follows: Direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like modifications made to product W68 that would increase the variable costs by $7.90 per unit and that would require an investment of $31,000 in special molds that would have no salvage value. This special order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order. If the special order is accepted, the company's overall net operating income would increase (decrease) by:

• A)$(4,400)
• B)$69,600
• C)$30,600
• D)$(24,600)

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Definitions:

Stage 1

In developmental contexts, refers to the initial phase where foundational skills or behaviors begin to form.

Sleep

A naturally recurring state of mind and body characterized by altered consciousness, relatively inhibited sensory activity, and the inhibition of nearly all voluntary muscles.

REM Sleep

Rapid eye movement sleep; a recurring sleep stage during which vivid dreams commonly occur. Also known as paradoxical sleep, because the muscles are relaxed (except for minor twitches) but other body systems are active.

Jerky Movements

Sudden, quick movements that are not smooth or controlled, often involuntary, and can be a symptom of various neurological conditions.