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Colortrigon Company Makes a Variety of Paper Products

Question 130

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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:
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. 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.

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