Northern Glass Manufacturing has a current production level of 200,000 glass jars per month. Unit costs at this level are:
Current monthly sales are 180,000 units. Canadian Hardware Ltd. has contacted Northern Glass Manufacturing about purchasing 15,000 units at $1.00 each. Current sales would not be affected by the special order, and variable marketing/distributing costs would not be incurred on the special order.
What is Comics Plus' change in profits if the order is accepted?
A) $4,800 increase
B) $4,800 decrease
C) $1,800 decrease
D) $300 decrease
E) $1,200 increase
Correct Answer:
Verified
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