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Excellent Manufacturers Inc

Question 158

Multiple Choice

Excellent Manufacturers Inc.has a current production level of 20,000 units per month.Unit costs at this level are:
Excellent Manufacturers Inc.has a current production level of 20,000 units per month.Unit costs at this level are: Current monthly sales are 18,000 units.Jax Company has contacted Excellent about purchasing 1,550 units at $2.00 each.Current sales would NOT be affected by the one-time-only special order,and variable marketing/distribution costs would NOT be incurred on the special order.What is Ratzlaff Company's change in operating profits if the special order is accepted? A) $4,929.00 increase in operating profits B) $4,929.00 decrease in operating profits C) $1,829.00 increase in operating profits D) $1,829.00 decrease in operating profits
Current monthly sales are 18,000 units.Jax Company has contacted Excellent about purchasing 1,550 units at $2.00 each.Current sales would NOT be affected by the one-time-only special order,and variable marketing/distribution costs would NOT be incurred on the special order.What is Ratzlaff Company's change in operating profits if the special order is accepted?


A) $4,929.00 increase in operating profits
B) $4,929.00 decrease in operating profits
C) $1,829.00 increase in operating profits
D) $1,829.00 decrease in operating profits

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