The Following Information Relates to the Tram Company for the Upcoming

question 52

Multiple Choice

The following information relates to the Tram Company for the upcoming year. The cost of goods sold includes $1,200,000 of fixed manufacturing overhead;the operating expenses include $100,000 of fixed marketing expenses.A special order offering to buy 50,000 units for $7.50 per unit has been made to Tram.Fortunately,there will be no additional operating expenses associated with the order and Tram has sufficient capacity to handle the order.How much will operate profits be increased if Tram accepts the special order?

• A)$25,000.
• B)$62,500.
• C)$100,000.
• D)$125,000.

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Definitions:

Pretend Play

A form of play among children where they use their imagination to create scenarios and enact roles, helping in cognitive and social development.

Mental Acts

Cognitive activities of the mind, such as thinking, reasoning, and problem-solving.

Mutual Exclusivity Assumption

The cognitive bias in language acquisition where children assume that objects only have one name and that different names refer to different objects.

Cones

In the eye, cone-shaped receptors of light that transmit sensations of color.