Minor Electric Has Received a Special One-Time Order for 1,500

question 12

Multiple Choice

Minor Electric has received a special one-time order for 1,500 light fixtures (units) at $5 per unit.Minor currently produces and sells 7,500 units at $6.00 each.This level represents 75% of its capacity.Production costs for these units are $4.50 per unit,which includes $3.00 variable cost and $1.50 fixed cost.To produce the special order,a new machine needs to be purchased at a cost of $1,000 with a zero salvage value.Management expects no other changes in costs as a result of the additional production.Should the company accept the special order?

• A)No,because net income would decrease by $1,500.
• B)No,because net income would decrease by $2,000.
• C)Yes,because net income would increase by $7,500.
• D)Yes,because net income would increase by $2,000.
• E)No,because net income would decrease by $5,500.

---

Definitions:

Latent Content

The underlying, hidden meaning of dreams or other unconscious expressions, as opposed to the manifest content or overt storyline.

Manifest Content

The consciously remembered content of a dream.

Positive Transference

A psychoanalytic concept where a patient projects positive feelings or attributes onto their therapist, rooted in earlier relationships.

Negative Transference

A phenomenon in psychotherapy where the patient redirects negative feelings or attitudes experienced in past relationships onto the therapist.