Bonder Company Makes a Variety of Paper Products A)Do Not Accept the Order Because Income Will Decrease by Printer

Multiple Choice

Bonder Company makes a variety of paper products.One product is printer paper,packaged 2,000 sheets to a box.One box normally sells for $30 A large bank offered to purchase 5,000 boxes at $26 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 production capacity.No fixed costs are avoidable.Which of the following represents the solution?
$\begin{array}{lr}\text { Direct materials } & \$ 128 \\\text { Direct labour } & 53 \\\text { Variable overhead } & 21 \\\text { Fixed overhead } & 65\end{array}$

A) Do not accept the order because income will decrease by $35,000.
B) Do not accept the order because income will decrease by $5,000.
C) Accept the order because income will increase by $35,000.
D) Accept the order because income will increase by $5,000.