Zildjian Corporation Manufactures a Single Product with the Following Unit

question 96

Multiple Choice

Zildjian Corporation manufactures a single product with the following unit costs for 1,250 units: Recently, a company approached Zildjian Corporation about buying 100 units for $5,100 each. Currently, the models
Are sold to dealers for $7,900.
Assume there is additional capacity for 60 more units and the firm has to reduce regular customer sales by 40 units in order to contract the special order. There are selling expenses on only the sales to the regular customers. What is the net income if the special order of 100 units is accepted?

• A) $1,353,960
• B) $894,960
• C) $1,029,600
• D) $918,000

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Definitions:

Socialization

The process by which an individual learns and internalizes the norms, values, and behaviors necessary for functioning within their society.

Personal Distress

A self-focused emotional reaction to another person’s distress.

Sympathy

The feelings of pity and sorrow for someone else's misfortune, often prompting a desire to offer comfort or assistance.

Autonomy

The ability to assert one’s own needs in a relationship.