Multiple Choice
String Corporation can manufacture 490,000 tennis rackets a year at a variable cost of $15 per racket and at the fixed costs of $500,000.String budgeted that it can sell 400,000 at $25 each. An additional order of 100,000 was received, but at a discount of 35% from the regular price.
If String accepts the special order, income before taxes will:
A) Decrease by $100,000
B) Increase by $125,000
C) Increase by $25,000
D) Some other amount
Correct Answer:

Verified
Correct Answer:
Verified
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