First Image has a plant capacity of 80,000 units per month.Unit costs at capacity are: Current monthly sales are 78,000 units at $12.60 each.Computer Output Management has contacted First Image about purchasing 2,000 units at $12.00 each.Current sales would not be affected by the special order.What is First Image's change in profits if the order is accepted?
A)$7,400 increase
B)$8,600 increase
C)$4,400 increase
D)$2,600 decrease
E)$3,600 decrease

Question

First Image has a plant capacity of 80,000 units per month.Unit costs at capacity are:  Current monthly sales are 78,000 units at $12.60 each.Computer Output Management has contacted First Image about purchasing 2,000 units at $12.00 each.Current sales would not be affected by the special order.What is First Image's change in profits if the order is accepted?
A)$7,400 increase 
B)$8,600 increase 
C)$4,400 increase 
D)$2,600 decrease 
E)$3,600 decrease

Quizplus · Accepted Answer

The Answer of First Image has a plant capacity of 80,000 units per month.Unit costs at capacity are:  Current monthly sales are 78,000 units at $12.60 each.Computer Output Management has contacted First Image about purchasing 2,000 units at $12.00 each.Current sales would not be affected by the special order.What is First Image's change in profits if the order is accepted?
A)$7,400 increase 
B)$8,600 increase 
C)$4,400 increase 
D)$2,600 decrease 
E)$3,600 decrease

First Image Has a Plant Capacity of 80,000 Units Per