Use the Information Below to Answer the Following Question(s)

question 124

Multiple Choice

Use the information below to answer the following question(s) .Following a strategy of product differentiation, Barry Company makes an XX 300.Barry Company presents the following data for the years 1 and 2. Barry Company produces no defective units but it wants to reduce direct materials usage per unit of XX 300 in year 2.Manufacturing conversion costs in each year depend on production capacity defined in terms of XX 300 units that can be produced.Selling and customer-service costs depend on the number of customers that the customer and service functions are designed to support.Neither conversion costs or customer-service costs are affected by changes in actual volume.Barry Company has 23 customers in year 1 and 25 customers in year 2.The industry market size for high-end appliances increased 5% from year 1 to year 2.
-What is the Barry Company's operating income in year 2?

• A)$378,600
• B)$366,120
• C)$1,242,000
• D)$403,520
• E)$210,000

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Definitions:

Defense

Psychological strategies used unconsciously to protect oneself from anxiety arising from unacceptable thoughts or feelings.

Transference

A psychological phenomenon in which an individual redirects feelings and desires, often unconsciously, from one person to another, particularly noted in psychoanalytic therapy.

Aversive Conditioning

A type of behavior conditioning where a noxious stimulus is paired with a particular unwanted behavior to reduce its occurrence.

Classical Conditioning

A simple form of learning in which a neutral stimulus comes to evoke the response usually evoked by another stimulus by being paired repeatedly with the other stimulus.