Mabelle Lighting Reports the Following Data from This Year's Master

question 24

Multiple Choice

Mabelle Lighting reports the following data from this year's master budget: $$\begin{array} { l c c } & \text { Per Unit } & \text { Total } \\\text { Variable manufacturing cost } & \$ 12 & \\\text { Fixed manufacturing cost } & \$ 3 & \$ 24000 \\\text { Fixed selling and administrative expense } & \$ 1 & \$ 8000\end{array}$$ Mabelle's capacity is 10 000 units per year,and the normal selling price is $20 per unit.A one-time-only order for 1000 units has been received at a special price of $17 per unit.The order would not disturb regular business.If the order is accepted,overall profit will increase by:

• A)$1000
• B)$2000
• C)$3000
• D)$5000

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Definitions:

Sine

A trigonometric function denoting the ratio of the length of the side opposite to a given angle to the length of the hypotenuse in a right-angled triangle.

Pulsating

A periodic variation in magnitude or intensity, often used to describe waveforms or signals.

Peak-to-peak

A measure of the amplitude of a waveform, indicated by the difference between its maximum and minimum values.

RMS

Root Mean Square, a statistical measure of the magnitude of a varying quantity, used especially in electrical engineering to quantify the average voltage or current of alternating current (AC).