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Answer the Following Questions Using the Information Below

Question 64

Multiple Choice

Answer the following questions using the information below:
Heck's Kitchens is approached by Mr. Louis Cifer, a new customer, to fulfill a large one-time-only special order for a product similar to one offered to regular customers. The following per unit data apply for sales to regular customers:
Answer the following questions using the information below: Heck's Kitchens is approached by Mr. Louis Cifer, a new customer, to fulfill a large one-time-only special order for a product similar to one offered to regular customers. The following per unit data apply for sales to regular customers:    Heck's Kitchens has excess capacity. Mr. Cifer wants the cabinets in cherry rather than oak, so direct material costs will increase by $50 per unit. -If Louis Cifer wanted a long-term commitment for supplying this product, this analysis: A) would definitely be different B) may be different C) would not be different D) does not contain enough information to determine if there would be a difference Heck's Kitchens has excess capacity. Mr. Cifer wants the cabinets in cherry rather than oak, so direct material costs will increase by $50 per unit.
-If Louis Cifer wanted a long-term commitment for supplying this product, this analysis:


A) would definitely be different
B) may be different
C) would not be different
D) does not contain enough information to determine if there would be a difference

Correct Answer:

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