A Customer Has Requested That Gamba Corporation Fill a Special

question 52

Multiple Choice

A customer has requested that Gamba Corporation fill a special order for 3,000 units of product Q41 for $25.00 a unit.While the product would be modified slightly for the special order,product Q41's normal unit product cost is $21.40:
Direct labor is a variable cost.The special order would have no effect on the company's total fixed manufacturing overhead costs.The customer would like modifications made to product Q41 that would increase the variable costs by $7.00 per unit and that would require an investment of $15,000 in special molds that would have no salvage value.
This special order would have no effect on the company's other sales.The company has ample spare capacity for producing the special order.If the special order is accepted,the company's overall net operating income would increase (decrease) by:

• A)$(5,700)
• B)$(21,300)
• C)$(25,200)
• D)$10,800

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Definitions:

Hormone Treatments

Medical therapies aimed at adjusting or replacing hormones in the body, often used in gender affirming procedures or to treat hormonal imbalances.

Aesthetic Surgeries

Surgical procedures aimed at enhancing or modifying one's appearance for cosmetic rather than medical reasons.

Canada

A country located in the northern part of North America, known for its vast landscapes, multicultural cities, and bilingualism (English and French).

Emphasized Femininity

A concept highlighting how femininity is socially constructed to accommodate the interests and desires of men, often leading to reinforcing gender inequalities.