Answer:
The increase in pre-tax income 20,000
Explanation:
The fixed cost of production would remain the same whether or not the special order is taken, hence, irrelevant for the decision at hand.
The sale price for the special order=10
the variable cost per unit=6
contribution margin per unit from special order=10-6=4
The increase in pre-tax income=total contribution margin from special order
The increase in pre-tax income=5000*4
The increase in pre-tax income=20,000
Hence, accepting the order is worthwhile.
I think it’s A because they have to put it under testing
Central Banks, Retail Banks, Commercial Banks, Shadow Banks, Investment Banks, Cooperative Banks, Credit Unions.
The correct answer is 20 boxes of Cracker Jacks.
If you have $10 and the cost of the Cracker Jacks is 50 cents per box, then the maximum quantity that you can purchase is 20 boxes. This is calculated by dividing $10 by 50 cents, which equals 20.
