Arkansas Company provided the following data for its only product: Assume there is excess capacity.There is a special order outstanding for 1,000 units at $40.00 per unit.If Arkansas Company accepts the special order,net income would ________.
A)increase $40,000
B)increase $11,250
C)decrease $28,750
D)decrease $10,000

Question

Arkansas Company provided the following data for its only product:   Assume there is excess capacity.There is a special order outstanding for 1,000 units at $40.00 per unit.If Arkansas Company accepts the special order,net income would ________.
A)increase $40,000 
B)increase $11,250 
C)decrease $28,750 
D)decrease $10,000

Quizplus · Accepted Answer

The Answer of Arkansas Company provided the following data for its only product:   Assume there is excess capacity.There is a special order outstanding for 1,000 units at $40.00 per unit.If Arkansas Company accepts the special order,net income would ________.
A)increase $40,000 
B)increase $11,250 
C)decrease $28,750 
D)decrease $10,000

Arkansas Company Provided the Following Data for Its Only Product