Wiacek Corporation Has Received a Request for a Special Order

question 62

Multiple Choice

Wiacek Corporation has received a request for a special order of 4,000 units of product F65 for $26.60 each.Product F65's unit product cost is $25.80,determined as follows:
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 F65 that would increase the variable costs by $3.00 per unit and that would require an investment of $23,000 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)$(31,800)
• B)$3,800
• C)$3,200
• D)$(48,400)

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Definitions:

Descriptive Statistic

A brief summary statistic that quantitatively describes or summarizes features from a collection of information.

Data Set

A collection of data, often presented in tabular form, where each row represents a different individual or entity and each column represents a particular variable or attribute.

Population Subset

A smaller group selected from a larger population, used in statistical analysis to draw conclusions or make inferences about the greater population.

Inferential Statistics

A branch of statistics that allows us to make predictions or inferences about a population based on a sample of data.