The Following Information Relates to the Jax Company for the Upcoming

question 57

Multiple Choice

The following information relates to the Jax Company for the upcoming year. The cost of goods sold includes $2,400,000 of fixed manufacturing overhead;the operating expenses include $200,000 of fixed marketing expenses.A special order offering to buy 50,000 units for $15.00 per unit has been made to Jax.Fortunately,there will be no additional operating expenses associated with the order and Jax has sufficient capacity to handle the order.How much will operating profits increase if Jax accepts the special order?

• A)$50,000.
• B)$125,000.
• C)$200,000.
• D)$250,000.

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Definitions:

Elastic Clause

The provision in the U.S. Constitution that grants Congress the power to pass all laws necessary and proper for carrying out its enumerated powers, also known as the Necessary and Proper Clause.

Full Faith

A principle requiring states to respect and enforce the public acts, records, and judicial rulings of other states, derived from the U.S. Constitution.

Supremacy Clause

A clause in the United States Constitution declaring that federal law is the "supreme law of the land" and takes precedence over state laws and constitutions when they conflict.

Inherent Powers

Powers that are not explicitly specified in the Constitution but are necessary for the government to perform its essential duties and functions.