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ProLight Plans to Sell 1,600 White Lights That Enhance Indoor

Question 94

Multiple Choice

ProLight plans to sell 1,600 white lights that enhance indoor plant growth next year with total budgeted sales of $48,000 and estimated profit of $8,000.Variable costs are projected to be $17.50 per unit.Customer A offers to pay $10,000 to buy 400 lights from ProLight.Total fixed costs are $12,000 per year.This offer does not affect ProLight's other planned operations.What is the incremental cost associated with the offer from Customer A?


A) $58,000
B) $10,000
C) $48,000
D) $7,000

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