The Bharu Violin Corporation Has the Capacity to Manufacture and Sell

question 72

Multiple Choice

The Bharu Violin Corporation has the capacity to manufacture and sell 5,000 violins each year but is currently only manufacturing and selling 4,800. The following data relate to annual operations at 4,800 units:
Woolgar Symphony Orchestra is interested in purchasing Bharu's excess capacity of 200 units but only if they can get the violins for $350 each. This special order would not affect regular sales or the total fixed costs.
-If the special order from Woolgar Symphony Orchestra is accepted,the financial advantage (disadvantage) Bharu for the year should be:

• A) $40,000
• B) ($10,000)
• C) ($22,000)
• D) ($28,000)

---

Definitions:

Prefrontal Association Cortex

A region of the frontal lobes involved in planning complex cognitive behaviors, personality expression, decision making, and moderating social behavior.

Posterior Parietal Cortex

An area of the brain located at the back of the parietal lobe, involved in integrating sensory information and in the coordination of movements.

Syntax

Sets of rules for putting together words; proposed to be unique to human language.

Visual Area V4

A region of the brain within the visual cortex that processes color perception and is involved in recognizing shapes and objects.