The Following Are the Jensen Corporation's Unit Costs of Making

question 3

Multiple Choice

The following are the Jensen Corporation's unit costs of making and selling an item at its capacity of 1, 000 units per month: Present sales amount to 700 units per month.Fixed costs, both manufacturing and selling and administrative, are constant within the relevant range between 700 units and 1, 000 units.Direct labor is a variable cost. An order has been received from a customer in a foreign market for 100 units.The order would not affect current sales.The variable selling and administrative expenses would have to be incurred on this special order as well as for all other sales.How much will the company's profits be increased or (decreased) if it prices the 100 units at $7 each?

• A)$(30)
• B)$150
• C)$0
• D)$310

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Definitions:

Invading Group

A population that enters a territory or community with the intention of taking control, often causing conflict or disruption.

Ecological Theory

A framework for understanding the complex interactions between individuals and their environments, emphasizing the multi-layered nature of those interactions.

Minority Group

A sociological term referring to a group of people who, due to their physical or cultural characteristics, are singled out from the others in the society in which they live for differential and unequal treatment.

Majority Population

The segment of a population that makes up more than half of its total, often possessing sociopolitical power or cultural dominance.