An acceptance that includes a change to the original terms still creates a valid contract

Clemente Inc. incurs the following costs to produce 10,000 units of a subcomponent:

Direct materials $8,400 Direct labor 11,250 Variable overhead 12,600 Fixed overhead 16,200 An outside supplier has offered to sell Clemente the subcomponent for $2.85 a unit. If Clemente could avoid $3,000 of fixed overhead by accepting the offer, net income would increase (decrease) by a) $(3,150). b) $6,750. c) $750. d) $(5,850).

An optimize position strategy differs from a harvest strategy in that an optimize position strategy ________

A) involves a conscious effort to reduce the customer base in order to reach a more profitable level of business B) is used to protect an attractive market position in which the business dominates with respect to competitive position C) is an offensive strategic market plan that seeks to improve a business's competitive position in an attractive segment of the market D) is used to maximize profits and cash flow as a business slowly exits a product-market E) is used for exiting a market by selling or closing down the business or eliminating the product