Answer the Following Question(s)using the Information Below

question 171

Multiple Choice

Answer the following question(s) using the information below.Easy Fit Ltd.manufactures heating, ventilation, and air conditioning (HVAC) equipment.The Manufacturing Division creates parts; and, the Assembly Division builds and sells the equipment.The Manufacturing Division "sells" furnace parts packages to the Assembly Division.The market price for the Assembly Division to purchase a mini furnace is $3,500.The fixed costs for the Manufacturing Division are assumed to be the same over the range of 2,000-5,000 units.The fixed costs for the Assembly Division are assumed to be $40.00 per unit at 5,000 units.Manufacturing costs per furnace are:
Assembly's costs per completed furnace are:

-If the Assembly Division sells 1,000 furnaces at a price of $3,500 per unit to customers, what is the company's operating income?

• A)$3,250,000
• B)$175,000
• C)$1,660,000
• D)$3,235,000
• E)$1,395,000

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Definitions:

Procedural Memory

A type of long-term memory for how to perform different actions and skills.

Serial-Position Effect

A psychological phenomenon where people tend to remember the first and last items in a series better than the middle items.

Proactive Interference

The phenomenon where older memories interfere with the recall of newer memories.

Retention

The ability to keep or hold onto something, such as information or substances, within a system or body.