Thompson Company Had the Following Results of Operations for the Past

question 91

Multiple Choice

Thompson Company had the following results of operations for the past year: A foreign company (whose sales will not affect Thompson's market) offers to buy 4,000 units at $7.50 per unit. In addition to variable manufacturing costs, selling these units would increase fixed overhead by $600 and selling and administrative costs by $300. If Thompson accepts the offer, its profits will:

• A) Increase by $30,000.
• B) Increase by $6,000.
• C) Decrease by $6,000.
• D) Increase by $5,200.
• E) Increase by $4,300.

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Definitions:

OB Research

The study of individual and group behavior in organizational settings through systematic analysis and application of knowledge.

Talent and Potential

The natural aptitude or skill possessed by an individual and their capacity to develop and succeed in certain tasks or to progress in their career.

Counterproductive Work Behaviors

Actions by employees that harm or intend to harm a company and its resources.

Voluntary

Refers to actions or services performed out of free will without any coercion or legal obligation.