Assume That After Introducing the New Product, the Company Finds

question 37

Multiple Choice

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:

Globalization

A process leading to the increasing interconnectedness of different parts of the world through economic, cultural, technological, and political exchanges.

Continental Europe

Continental Europe refers to the main landmass of Europe, distinguishing it from the British Isles and other peripheral islands, focusing on countries connected directly to mainland Europe.

English

A West Germanic language originating in England and now the primary language of numerous countries and an official language worldwide.

Global Village

A concept referring to the world as being interconnected through the use of electronic communication technologies, making distance and geographical location less significant.