The Following Information Relates to a Product Produced by Ashland

question 66

Multiple Choice

The following information relates to a product produced by Ashland Company: Fixed selling costs are $1,000,000 per year.Variable selling costs of $4 per unit sold are added to cover the transportation cost.Although production capacity is 500,000 units per year,Ashland expects to produce only 400,000 units next year.The product normally sells for $40 each.A customer has offered to buy 60,000 units for $30 each.The customer will pay the transportation charge on the units purchased.If Ashland accepts the special order,the effect on income would be a:

• A)$60,000 increase.
• B)$180,000 increase.
• C)$420,000 increase.
• D)$600,000 decrease.

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Definitions:

Document Holder

A device or accessory designed to hold documents in an upright or ergonomic position for easy viewing and to reduce strain.

OSHA

The Occupational Safety and Health Administration, a U.S. government agency responsible for ensuring safe and healthful working conditions by setting and enforcing standards.

Computer Workstations

Specialized environments designed for computing work, often including a desk, computer hardware, and ergonomic seating.

Head Position

The orientation or angle of the head relative to the body or an external reference point.