Scales Corporation Has Received a Request for a Special Order

question 98

Multiple Choice

Scales Corporation has received a request for a special order of 6,000 units of product Y45 for $13.70 each.Product Y45's unit product cost is $11.50,determined as follows: Direct labor is a variable cost.The special order would have no effect on the company's total fixed manufacturing overhead costs.The customer would like modifications made to product Y45 that would increase the variable costs by $8.10 per unit and that would require an investment of $20,000 in special molds that would have no salvage value. This special order would have no effect on the company's other sales.The company has ample spare capacity for producing the special order.If the special order is accepted,the company's overall net operating income would increase (decrease) by:

• A)($26,600)
• B)$13,200
• C)($55,400)
• D)($21,300)

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Definitions:

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Medications designed to help increase blood flow to the penis, thereby aiding in achieving and maintaining an erection.

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A psychological and physiological state that can be experienced as a need or desire for sexual activity or intimacy.

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Medications that improve erectile function by increasing blood flow to the penis.

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pertains to the ability of the male penis to become rigid and erect, typically in response to sexual arousal.