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Each Month Newton Company Produces 30,000 Units of a Product

Question 77

Multiple Choice

Each month Newton Company produces 30,000 units of a product that has variable costs of $70 per unit.Total fixed costs for the month are $990,000.A special order is received for 1,000 units at a price of $77 per unit.Newton Company has adequate capacity for the special order.If Newton Company accepts the special order,what is the profit to Newton Company?


A) There is no profit; it is loss.
B) $7,000
C) $21,000
D) $210,000

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