The MNK Company has gathered the following information for a unit of its most popular product: The above cost information is based on 4,000 units.A foreign distributor has offered to buy 1,000 units at a price of $16 per unit.This special order would not disturb regular sales.Variable shipping and other selling expenses would be an additional $1 per unit for the special order.If the special order is accepted,MNK's operating profits will increase by:
A)$1,000.
B)$1,600.
C)$2,000.
D)$4,000.

Question

The MNK Company has gathered the following information for a unit of its most popular product:  The above cost information is based on 4,000 units.A foreign distributor has offered to buy 1,000 units at a price of $16 per unit.This special order would not disturb regular sales.Variable shipping and other selling expenses would be an additional $1 per unit for the special order.If the special order is accepted,MNK's operating profits will increase by:
A)$1,000. 
B)$1,600. 
C)$2,000. 
D)$4,000.

Quizplus · Accepted Answer

The Answer of The MNK Company has gathered the following information for a unit of its most popular product:  The above cost information is based on 4,000 units.A foreign distributor has offered to buy 1,000 units at a price of $16 per unit.This special order would not disturb regular sales.Variable shipping and other selling expenses would be an additional $1 per unit for the special order.If the special order is accepted,MNK's operating profits will increase by:
A)$1,000. 
B)$1,600. 
C)$2,000. 
D)$4,000.

The MNK Company Has Gathered the Following Information for a Unit