Zildjian Corporation manufactures a single product with the following unit costs for 1,250 units: Recently, a company approached Zildjian Corporation about buying 100 units for $5,100 each. Currently, the models are sold to dealers for $7,900. Zildjian Corporation's capacity is sufficient to produce the extra 100 units. No additional selling expenses would be incurred on the special order.
How much will income change if the special order is accepted?
A) no change
B) increase by $121,600
C) decrease by $180,000
D) increase by $76,600

Question

Zildjian Corporation manufactures a single product with the following unit costs for 1,250 units:  Recently, a company approached Zildjian Corporation about buying 100 units for $5,100 each. Currently, the models are sold to dealers for $7,900. Zildjian Corporation's capacity is sufficient to produce the extra 100 units. No additional selling expenses would be incurred on the special order.
How much will income change if the special order is accepted?
A) no change 
B) increase by $121,600 
C) decrease by $180,000 
D) increase by $76,600

Quizplus · Accepted Answer

The Answer of Zildjian Corporation manufactures a single product with the following unit costs for 1,250 units:  Recently, a company approached Zildjian Corporation about buying 100 units for $5,100 each. Currently, the models are sold to dealers for $7,900. Zildjian Corporation's capacity is sufficient to produce the extra 100 units. No additional selling expenses would be incurred on the special order.
How much will income change if the special order is accepted?
A) no change 
B) increase by $121,600 
C) decrease by $180,000 
D) increase by $76,600

Zildjian Corporation Manufactures a Single Product with the Following Unit