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Principles of Accounting Volume 2: Managerial Accounting
at University
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Q1 | Which of the following is sometimes referred to as the “Anti Chain Store Act”?
Sarbanes-Oxley Act
Robinson-Patman Act
Wright-Patman Act
Securities Act of 1939
Q2 | Jansen Crafters has the capacity to produce 50,000 oak shelves per year and is currently selling 44,000 shelves for $32 each. Cutrate Furniture approached Jansen about buying 1,200 shelves for bookcases it is building and is willing to pay $26 for each shelf. No packaging will be required for the bulk order. Jansen usually packages shelves for Home Depot at a price of $1.50 per shelf. The $1.50 per-shelf cost is included in the unit variable cost of $27, with annual fixed costs of $320,000. However, the $1.50 packaging cost will not apply in this case. The fixed costs will be unaffected by the special order and the company has the capacity to accept the order. Based on this information, what would be the profit if Jansen accepts the special order?
Profits will decrease by $1,200.
Profits will increase by $31,200.
Profits will increase by $600.
Profits will increase by $7,200.
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