SloGrowth Has Idle Capacity

question 49

Multiple Choice

SloGrowth has idle capacity. They have received a special order for 2000 units at a price of $6 per unit. Currently production and sales are budgeted for 20 000 units without considering the special order. Budget information for the year is presented below.
Cost of goods sold includes $20 000 of fixed manufacturing cost. Determine the effect on profit if the special order is accepted.

• A) Remains the same
• B) Increase by $2000
• C) Decrease by $2000
• D) Decrease by $1000

Understand the implications of using regression to predict values from one or more variables.

Grasp the concept of multiple correlation and its use in predicting a criterion variable from two or more predictor variables.

Identify and apply the correct statistical procedures for testing the significance of relationships between variables.

Understand the concept of linear regression and its components: the slope, Y-intercept, and their interpretations.

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Definitions:

Invitation to Treat

An invitation for parties to make an offer, which can then be accepted or rejected, not an offer itself.

Breach of Contract

The violation of any term or condition in a contract without lawful excuse.

Letter of Acceptance

A document that officially acknowledges the acceptance of an offer or proposal, typically relating to educational admission, job offers, or contractual agreements.

Satisfactory Financing

Obtaining a loan or financial backing on terms acceptable to the party or parties involved, typically within a certain timeframe.