Eakins Corporation Has Just Developed a New Product

question 82

Multiple Choice

Eakins Corporation has just developed a new product.At an expected sales level of 60, 000 units per year, the company anticipates that the following costs will be incurred: Eakins Corporation uses the absorption costing approach to cost-plus pricing as described in the text. Assume that after introducing the new product, the company finds that it has excess capacity.A foreign dealer has offered to purchase 2, 000 units at a special price of $36 per unit.This sale would not disturb regular business.If the special price is accepted on the 2, 000 units, the company's overall net income for the year should:

• A)decrease by $24, 000
• B)increase by $20, 000
• C)increase by $8, 000
• D)increase by $32, 000

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Definitions:

Lateralization

The specialization of functions within certain regions of the brain, often leading to the distinction in abilities between the right and left hemispheres.

Hemispherectomy

A surgical procedure involving the removal or disabling of one hemisphere of the brain, typically to treat severe epilepsy not responsive to medication.

Neurogenesis

The creation of new neurons in the brain, a process that occurs throughout life and is crucial for learning and memory.

Left Cerebral Hemisphere

The left side of the brain, typically associated with tasks that involve logic, language, and analytical thinking.