Fern Valley Ltd Reports the Following Data from This Year's

question 54

Multiple Choice

Fern Valley Ltd reports the following data from this year's master budget:
$$\begin{array} { l c r } & \text { Per unit } & \text { Total } \\\text { Variable manufacturing cost } & \$ 18 & \\\text { Fixed manufacturing cost } & \$ 6 & \$ 24000 \\\text { Fixed selling and administrative expense } & \$ 2 & \$ 4000\end{array}$$
Fern Valley Ltd's capacity is 20 000 units per year, and the normal selling price is $35 per unit. A one-time-only order for 1200 units has been received at a special price of $30 per unit. The order would not disturb regular business. If the order is accepted, overall profit will increase by:

• A) $ 4 800
• B) $ 6 000
• C) $ 8 000
• D) $14 400

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Definitions:

Pregnancy-Based Discrimination

Unfair treatment or discrimination in the workplace based on pregnancy, childbirth, or related medical conditions, which is illegal under various laws.

Family and Medical Leave Act

A United States federal legislation that allows workers to take unpaid leave with job security for specific family and medical purposes.

Leave Availability

The provision and policies regarding time off from work that employees are entitled to for various reasons.

Age Discrimination in Employment Act

U.S. federal law designed to protect workers 40 years of age and older from employment discrimination based on age.