Harcourt manufacturing (hm) has the capacity to produce 10,000 fax machines per year. hm currently produces and sells 7,000 units per year. the fax machines normally sell for $100 each. modem products has offered to buy 2,000 fax machines from hm for $60 each. unit-level costs associated with manufacturing the fax machines are $15 each for direct labor and $40 each for direct materials. product-level and facility-sustaining costs are $50,000 and $65,000, respectively. should hm accept the special order? multiple choice
a. yes, unequivocally.
b. no.
c. yes, but only if qualitative factors are favorable.
d. no, because gaap requires all costs to be included in the product.

c

explanation:

the answer is a. $209,000

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.