Albatross Products Had the Following Unit Costs: a One-Time

question 11

Multiple Choice

Albatross Products had the following unit costs: A one-time customer has offered to buy 2,000 units at a special price of $48 per unit. Because of capacity
Constraints, 1,000 units will need to be produced during overtime. Overtime premium is $8 per unit. How much additional profit (loss) will be generated by accepting the special order?

• A) $30,000 loss
• B) $4,000 profit
• C) $24,000 loss
• D) $4,000 loss

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Definitions:

Fireside Chats

A series of evening radio addresses given by U.S. President Franklin D. Roosevelt between 1933 and 1944 to communicate directly with the American people about issues and policies.

Economic Security

A state where individuals have the confidence that they will have the resources to meet their basic needs without undue hardship.

Roosevelt

Refers to either Franklin D. Roosevelt, the 32nd President of the United States known for New Deal programs and leadership during World War II, or Theodore Roosevelt, the 26th President known for his progressive policies and conservation efforts.