Widget Inc

question 264

Multiple Choice

Widget Inc. manufactures widgets. The company has the capacity to produce 100,000 widgets per year, but it currently produces and sells 75,000 widgets per year. The following information relates to current production: If a special sales order is accepted for 7000 widgets at a price of $41 per unit, and fixed costs remain unchanged, how would operating income be affected? (NOTE: Assume regular sales are not affected by the special order.)

• A)Decrease by $42,000
• B)Increase by $42,000
• C)Increase by $287,000
• D)Increase by $2,200,000

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Definitions:

Social Categorization

The process of classifying individuals into groups based on shared characteristics, which can shape perceptions and social dynamics.

Turner

A person who operates a lathe or similar machinery, or in a historical context, a name associated with specific roles in medieval guilds.

Outgroup Member

An individual who is not part of a specific social group or is considered outside the boundary of an in-group.

Ingroup Member

An ingroup member is an individual who identifies as part of a specific group or community, sharing common interests, values, or identities with other members.