The Fast Trax Company manufactures adding machines.The company's capacity is 5,000 units per month;however,it currently is selling only 3,000 units per month.Company X has asked Fast Trax to sell 1,000 adding machines at $25 each.Normally,Fast Trax sells its product for $35.The company records report each adding machine's full absorption costs are $30 which includes fixed costs of $20.If Fast Trax was to accept Company X's offer,what would be the impact on Fast Trax's operating income?
A) Additional profit of $15,000
B) Additional profit of $25,000
C) A loss of $5,000 on this order
D) A loss of $10,000 on this order
Correct Answer:
Verified
Q1: A cost or revenue is _ if
Q2: Which of the following represent the three
Q4: Sebastian Enterprises sells a product for $25
Q5: Short-run decisions include pricing for which of
Q6: In the short run,which element is critical
Q7: What does the differential approach to pricing
Q8: Which statement is true concerning long-run decisions?
A)Long-run
Q9: The internal focus on continuous improvement is
Q10: Customer costs generally fall under several categories,including
A)cost
Q11: Customer costs generally fall under several categories.Which
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents