The Following Information Relates to Current Production of Outdoor Chaise

question 87

Multiple Choice

The following information relates to current production of outdoor chaise lounges at Backyard Posh: The regular selling price per chaise lounge is $280. The company is analyzing the opportunity to accept a special sales order for 900 chaise lounge at a price of $210 per unit. Fixed costs would remain unchanged. The company has the capacity to produce 65,000 chaise lounges per year, but is currently producing and selling 9000 chaise lounges per year. The 900 units would not require any variable marketing and administrative expenses. Regular sales will not be affected by the special order. If the company were to accept this special order, how would operating income be affected?

• A)Decrease by $63,900
• B)Decrease by $95,400
• C)Increase by $63,900
• D)Increase by $95,400

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Definitions:

Executive Recruitments

The process of identifying and hiring individuals for senior-level managerial or administrative roles within an organization.

Job Analysis

The process of studying and collecting information about the content and human requirements of jobs, as well as the context in which jobs are performed.

Job Recruitment

The process of attracting, screening, and selecting qualified people for a job or vacancy within an organization.

Job Synthesis

Job synthesis refers to the process of combining various job roles or tasks into a single, more comprehensive job position, often to increase efficiency or effectiveness within an organization.