Price discrimination is the practice of selling identical goods or services to different customers at different prices. True False The following information relates to a product produced by Faulkland Company: Direct materials Direct labor Variable overhead Fixed overhead $ 8 5 4 6 Unit cost $23 Fixed selling costs are $1,160,000 per year. Variable selling costs of $3 per unit sold are added to cover the transportation cost. Although production capacity is 660,000 units per year, Faulkland expects to produce only 560,000 units next year. The product normally sells for $32 each. A customer has offered to buy 76,000 units for $22 each. The customer will pay the transportation charge on the units purchased. If Faulkland accepts the special order, the effect on income would be a: $76,000 increase. $152,000 increase. $380,000 increase. O $760,000 decrease. The Arthur Company manufactures kitchen utensils. The company is currently producing well below its full capacity. The Benton Company has approached Arthur with an offer to buy 17,000 utensils at $0.85 each. Arthur sells its utensils wholesale for $0.96 each; the average cost per unit is $0.91, of which $0.10 is fixed costs. If Arthur were to accept Benton's offer, what would be the increase in Arthur's operating profits? $850. $680. O $1,020. O $1,870