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:

U.S. Federal Government

The U.S. Federal Government is the national government of the United States, composed of three distinct branches (legislative, executive, and judicial) established to provide national leadership and implement various laws and policies.

Goods and Services

The outputs offered by businesses or the economy at large, including tangible products (goods) and intangible offerings (services).

Double Government

A theory suggesting that national security policy is predominantly shaped and executed by a network of insulated managerial agencies, overshadowing traditional democratic institutions.

Bureaucrats

Government officials and workers who run the day-to-day business of government, often associated with the administrative aspects of governance.