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.
What is the profit earned by Zildjian Corporation on the original 1,250 units?
A) $6,800,000
B) $7,875,000
C) $2,750,000
D) $1,375,000

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.
What is the profit earned by Zildjian Corporation on the original 1,250 units?
A) $6,800,000 
B) $7,875,000 
C) $2,750,000 
D) $1,375,000

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.
What is the profit earned by Zildjian Corporation on the original 1,250 units?
A) $6,800,000 
B) $7,875,000 
C) $2,750,000 
D) $1,375,000

Zildjian Corporation Manufactures a Single Product with the Following Unit