Collegiate Products produces and sells padded stadium seats emblazoned with a university logo. The company has the capacity to produce as many as 6,000 seats per month but consistently averages much less. When 4,500 seats are produced, each seat has $5 of variable costs and $2 of fixed overhead costs allocated to it. The seats typically sell for $12 each. The company has been approached by a
small college who wishes to purchase 500 seats for special alumni at a price of $5 per seat. If the special order were accepted, net income would:
A) decrease by $1,000.
B) increase by $2,500.
C) decrease by $12,500.
D) not change.
D
Business
You might also like to view...
The most effective reinforcement schedules are variable ratio and variable interval.
a. true b. false
Business
A business presentation should indicate a consideration for the audience's point of view by _____
A) minimizing problems or concerns B) telling the audience what they need from the presentation C) describing how the audience can support your solutions D) being held at a nearby location E) using words such as "you" and "we"
Business