Collegiate Products Produces and Sells Padded Stadium Seats Emblazoned with a University

question 16

Multiple Choice

Collegiate Products produces and sells padded stadium seats emblazoned with a university logo.The company has the capacity to produce as many as 6000 seats per month but consistently averages much less.When 4500 seats are produced,each seat has $5 of variable costs and $2 of fixed overhead costs allocated to it.The seats typically sell for $25 each.The company has been approached by a small college who wishes to purchase 500 seats for special alumni at a price of $5 per seat.If the special order were accepted,net income would:

• A) decrease by $1000.
• B) increase by $2500.
• C) decrease by $12 500.
• D) not change.

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Definitions:

Job Descriptive Index

A validated questionnaire used for measuring an employee's job satisfaction across five dimensions: work, pay, promotions, supervision, and co-workers.

Job Satisfaction Instrument

A tool or survey designed to measure the degree of contentment a worker feels towards their job.

Voluntary Turnover

Turnover initiated by employees (often when the organization would prefer to keep them).

Role Ambiguity

Uncertainty about what the organization expects from the employee in terms of what to do or how to do it.