SloGrowth Has Idle Capacity

question 75

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

Analyze the impact of taxes and external changes (e.g., technology, industry exits) on supply and demand.

Understand how changes in supply and demand affect market equilibrium.

Recognize how government interventions, like subsidies and price controls, influence market outcomes.

Identify the factors leading to shifts in supply and demand curves.

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Definitions:

Degrees of Freedom

The tally of different values or quantities that can be given to a statistical distribution.

P Value

The probability of obtaining test results at least as extreme as the ones observed during the test, assuming that the null hypothesis is true.

Degrees of Freedom

The number of independent pieces of information used to estimate a parameter or calculate a statistic, often linked to the sample size.

P Value

The probability of obtaining test results at least as extreme as the observed results, assuming that the null hypothesis is true.