[The Following Information Applies to the Questions Displayed Below

question 65

Multiple Choice

[The following information applies to the questions displayed below.]
JCN Industries normally produces and sells 5,000 keyboards for personal computers each month.Variable manufacturing costs amount to $25 per unit,and fixed costs are $146,000 per month.The regular sales price of the keyboards is $86 per unit.JCN has been approached by a foreign company that wants to purchase an additional 1,000 keyboards per month at a reduced price.Filling this special order would not affect JCN 's regular sales volume or fixed manufacturing costs.
-On the basis of the above information only,which of the following is not true?

• A)At the 5,000-unit level of production,JCN's average cost per unit is $54.20.
• B)At the 6,000-unit level of production,JCN's average cost per unit is $49.33.
• C)It would not be profitable for JCN to consider the special order at a price less than $49 per unit.
• D)The fixed manufacturing costs of $146,000 are not relevant to this decision regarding the special order.

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Definitions:

Exploitation

Also referred to as financial abuse, it is the unauthorized or improper use of the resources of an elder for monetary or personal benefit, profit, or gain. Examples include forgery; misuse or theft of money or possessions; use of coercion or deception to surrender finances or property; or improper use of guardianship or power of attorney.

Elder

A term that refers to an older person, often used with respect and to acknowledge their wisdom and experience.

Monetary Benefit

Financial advantage or gain received from an action or investment.

ADAAA

The Americans with Disabilities Act Amendments Act of 2008, a civil rights law that prohibits discrimination based on disability.