General Mattress (GM) Company sells mattresses at a regular price of $800. The total cost per...

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General Mattress (GM) Company sells mattresses at a regular price of $800. The total cost per unit is $650, which consists of $150 direct labor per unit, $250 direct materials per unit, $50 fixed overhead per unit, and $200 variable overhead per unit. A hotel chain offered to buy 1,000 mattresses from GM at a discounted price of $650. This is a one-time special order (i.e., a short-term decision), and GM has enough spare capacity to accommodate this order. If GM accepts the special order, GM's profit will: O remain the same O decrease by $150,000 O decrease by $50,000 O increase by $50,000 O Increase by $150,000 General Mattress (GM) Company sells mattresses at a regular price of $800. The total cost per unit is $650, which consists of $150 direct labor per unit, $250 direct materials per unit, $50 fixed overhead per unit, and $200 variable overhead per unit. A hotel chain offered to buy 1,000 mattresses from GM at a discounted price of $650. This is a one-time special order (i.e., a short-term decision), and GM has enough spare capacity to accommodate this order. If GM accepts the special order, GM's profit will: O remain the same O decrease by $150,000 O decrease by $50,000 O increase by $50,000 O Increase by $150,000 General Mattress (GM) Company sells mattresses at a regular price of $800. The total cost per unit is $650, which consists of $150 direct labor per unit, $250 direct materials per unit, $50 fixed overhead per unit, and $200 variable overhead per unit. A hotel chain offered to buy 1,000 mattresses from GM at a discounted price of $650. This is a one-time special order (i.e., a short-term decision), and GM has enough spare capacity to accommodate this order. If GM accepts the special order, GM's profit will: O remain the same O decrease by $150,000 O decrease by $50,000 O increase by $50,000 O Increase by $150,000 General Mattress (GM) Company sells mattresses at a regular price of $800. The total cost per unit is $650, which consists of $150 direct labor per unit, $250 direct materials per unit, $50 fixed overhead per unit, and $200 variable overhead per unit. A hotel chain offered to buy 1,000 mattresses from GM at a discounted price of $650. This is a one-time special order (i.e., a short-term decision), and GM has enough spare capacity to accommodate this order. If GM accepts the special order, GM's profit will: O remain the same O decrease by $150,000 O decrease by $50,000 O increase by $50,000 O Increase by $150,000 General Mattress (GM) Company sells mattresses at a regular price of $800. The total cost per unit is $650, which consists of $150 direct labor per unit, $250 direct materials per unit, $50 fixed overhead per unit, and $200 variable overhead per unit. A hotel chain offered to buy 1,000 mattresses from GM at a discounted price of $650. This is a one-time special order (i.e., a short-term decision), and GM has enough spare capacity to accommodate this order. If GM accepts the special order, GM's profit will: O remain the same O decrease by $150,000 O decrease by $50,000 O increase by $50,000 O Increase by $150,000 General Mattress (GM) Company sells mattresses at a regular price of $800. The total cost per unit is $650, which consists of $150 direct labor per unit, $250 direct materials per unit, $50 fixed overhead per unit, and $200 variable overhead per unit. A hotel chain offered to buy 1,000 mattresses from GM at a discounted price of $650. This is a one-time special order (i.e., a short-term decision), and GM has enough spare capacity to accommodate this order. If GM accepts the special order, GM's profit will: O remain the same O decrease by $150,000 O decrease by $50,000 O increase by $50,000 O Increase by $150,000 General Mattress (GM) Company sells mattresses at a regular price of $800. The total cost per unit is $650, which consists of $150 direct labor per unit, $250 direct materials per unit, $50 fixed overhead per unit, and $200 variable overhead per unit. A hotel chain offered to buy 1,000 mattresses from GM at a discounted price of $650. This is a one-time special order (i.e., a short-term decision), and GM has enough spare capacity to accommodate this order. If GM accepts the special order, GM's profit will: O remain the same O decrease by $150,000 O decrease by $50,000 O increase by $50,000 O Increase by $150,000 General Mattress (GM) Company sells mattresses at a regular price of $800. The total cost per unit is $650, which consists of $150 direct labor per unit, $250 direct materials per unit, $50 fixed overhead per unit, and $200 variable overhead per unit. A hotel chain offered to buy 1,000 mattresses from GM at a discounted price of $650. This is a one-time special order (i.e., a short-term decision), and GM has enough spare capacity to accommodate this order. If GM accepts the special order, GM's profit will: O remain the same O decrease by $150,000 O decrease by $50,000 O increase by $50,000 O Increase by $150,000

Answer rating: 100% (QA)

Correct Answer is OPTION C profit will remain same Total Cost pe... View the full answer