2. Bonita Industriess unit manufacturing cost is:

Variable Costs	$50
Fixed Costs	25

A special order for 2000 units has been received from a foreign company. The unit price requested is $57. The normal unit price is $83. If the order is accepted, unit variable costs will increase by $2 for additional freight costs. The company has available capacity. If the order is accepted, incremental profit (loss) will be

A. $(46000).

B. $10000.

C. $16000.

D. $(36000).

2.

The following information is taken from the production budget for the first quarter:

Beginning inventory in units	1000
Sales budgeted for the quarter	386000
Production capacity in units	392000

How many finished goods units should be produced during the quarter if the company desires 3000 units available to start the next quarter?

A. 389000

B. 384000

C. 388000

D. 394000