The MNK Company Has Gathered the Following Information for a Unit

question 37

Multiple Choice

The MNK Company has gathered the following information for a unit of its most popular product: 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,MNK's operating profits will increase by:

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

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Definitions:

Optic Disc

The point of exit for ganglion cell axons leaving the eye. Because there are no rods or cones overlying the optic disc, it creates a blind spot in visual fields.

Sensory Retina

The part of the retina that contains photoreceptor cells (rods and cones) responsible for converting light into electrical signals for vision.

Macula Lutea

A region in the retina responsible for high-acuity vision where a high concentration of photoreceptor cells are located.

Fovea Centralis

A small pit in the retina of the eye where visual acuity (sharpness) is highest, due to a high concentration of cone cells.