Internet sales complement traditional distributors, thus enhancing companies' ability to secure and hold traditional distributors

Which of the following actions will INCREASE the present value of an investment?

A) Decrease the interest rate. B) Decrease the future value. C) Increase the amount of time. D) All of the above will increase the present value.

Elite Office Furniture received a special order for 1,200 units of its executive chairs at a selling price of $90 per chair. Elite Office Furniture has enough capacity to accept the order. No additional selling costs will be incurred

Unit costs to make and sell this product are as follows: Direct Materials $45; Direct Labor $19; Variable Manufacturing Overhead $6; Fixed Manufacturing Overhead $12; and Variable Selling Costs $5. What will be Elite Office Furniture's change in operating income if they accept the special order? Should Elite Office Furniture accept the order? Explain why or why not. What will be an ideal response?