Multiple Choice
Colortrigon Company makes a variety of paper products.One product is 30 lb copier paper, packaged 3,000 sheets to a box.One box normally sells for $20.A large bank offered to purchase 6,000 boxes at $15 per box.Costs per box are as follows: No variable marketing costs would be incurred on the order.The company is operating significantly below the maximum productive capacity.No fixed costs are avoidable.
Should Colotrigon accept the order?
A) Yes, income will increase by $30,000.
B) Yes, income will increase by $19,000.
C) No, income will decrease by $43,000.
D) No, income will decrease by $86,000.
E) It doesn't matter; there will be no impact on income.
Correct Answer:

Verified
Correct Answer:
Verified
Q125: Flexible resources may have unused capacity.
Q126: Bellair Company produces a product that has
Q127: Information about three joint products follows: <br><img
Q128: Which of the following costs is not
Q129: Connolly Company produces two types of lamps,
Q131: Manganese Company makes frames.A customer wants to
Q132: Information about three joint products follows: <br><img
Q133: Stars Manufacturing Company produces Products A1, B2,
Q134: If a future cost is the same
Q135: The profit contribution each segment makes toward