Comics Plus has a current production level of 200,000 comics per month.Unit costs at this level are: Current monthly sales are 180,000 units.Printers Ltd.has contacted Comics Plus 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)$6,000 increase
B)$6,000 decrease
C)$7,500 increase
D)$9,000 increase
E)$3,000 increase

Question

Comics Plus has a current production level of 200,000 comics per month.Unit costs at this level are:  Current monthly sales are 180,000 units.Printers Ltd.has contacted Comics Plus 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)$6,000 increase 
B)$6,000 decrease 
C)$7,500 increase 
D)$9,000 increase 
E)$3,000 increase

Quizplus · Accepted Answer

The Answer of Comics Plus has a current production level of 200,000 comics per month.Unit costs at this level are:  Current monthly sales are 180,000 units.Printers Ltd.has contacted Comics Plus 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)$6,000 increase 
B)$6,000 decrease 
C)$7,500 increase 
D)$9,000 increase 
E)$3,000 increase

Comics Plus Has a Current Production Level of 200,000 Comics