Reggie Corporation manufactures a single product with the following unit costs for 1,000 units:
Recently,a company approached Reggie Corporation about buying 100 units for $5,100 each.Currently,the models are sold to dealers for $7,800.Reggie Corporation's capacity is sufficient to produce the extra 100 units.No additional selling expenses would be incurred on the special order.
What is the profit earned by Reggie Corporation on the original 1,000 units?
A) $900,000
B) $2,640,000
C) $6,900,000
D) $8,400,000
Correct Answer:
Verified
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