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.

---

Definitions:

Mean

The arithmetic average of a set of numbers, found by dividing the sum of these numbers by the count of the numbers in the set.

Function

A relationship between a set of inputs and a set of permissible outputs, where each input is related to exactly one output.

Probability

The measure of the likelihood that an event will occur.

Function

A mathematical relation between a set of inputs and a set of permissible outputs with the property that each input is related to exactly one output.