A Company Has the Choice of Either Selling 1,000 Unfinished

question 141

Multiple Choice

A company has the choice of either selling 1,000 unfinished units as is or completing them.The company could sell the unfinished units as is for $4.00 per unit.Alternatively,it could complete the units with incremental costs of $1.00 per unit for direct materials,$2.00 per unit for direct labor,and $1.50 per unit for overhead,and then sell the completed units for $8.00 each.If the company completes the units,what is the impact on income?

• A)Income will increase by $4,000.
• B)Income will increase by $500.
• C)Income will decrease by $4,500.
• D)Income will decrease by $500.
• E)Income will increase by $8,000.

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Definitions:

Androgynous

A gender expression that combines or blurs characteristics traditionally associated with both masculinity and femininity.

Traditionally Masculine Traits

Characteristics culturally associated with male identity, such as strength, independence, and assertiveness.

Normative

Relating to an established standard or norm; often used to describe behaviors or conditions that are considered typical within a specific society or group.

Conscientiousness

A personality trait characterized by thoroughness, diligence, and the carefulness of an individual.