The Buchanan Company has gathered the following information for a unit of its most popular product: The above cost information is based on 10,000 units.A distributor has offered to buy 2,000 units at a price of $32 per unit.This special order would not disturb regular sales.Special packaging and other selling expenses would be an additional -$0.50 per unit for the special order.If the special order is accepted,Buchanan's operating profits will increase by:
A)$4,000.
B)$6,400.
C)$8,000.
D)$19,000.

Question

The Buchanan Company has gathered the following information for a unit of its most popular product:  The above cost information is based on 10,000 units.A distributor has offered to buy 2,000 units at a price of $32 per unit.This special order would not disturb regular sales.Special packaging and other selling expenses would be an additional -$0.50 per unit for the special order.If the special order is accepted,Buchanan's operating profits will increase by:
A)$4,000. 
B)$6,400. 
C)$8,000. 
D)$19,000.

Quizplus · Accepted Answer

The Answer of The Buchanan Company has gathered the following information for a unit of its most popular product:  The above cost information is based on 10,000 units.A distributor has offered to buy 2,000 units at a price of $32 per unit.This special order would not disturb regular sales.Special packaging and other selling expenses would be an additional -$0.50 per unit for the special order.If the special order is accepted,Buchanan's operating profits will increase by:
A)$4,000. 
B)$6,400. 
C)$8,000. 
D)$19,000.

The Buchanan Company Has Gathered the Following Information for a Unit