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

question 48

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 for year 1?

• A)$210,000
• B)$366,120
• C)$1,000,000
• D)$260,000
• E)$231,000

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Definitions:

Control Group

In an experiment, the group not exposed to the treatment; contrasts with the experimental group and serves as a comparison for evaluating the effect of the treatment

Exposure Therapies

Psychological treatments involving repeated exposure to feared stimuli to reduce the fear response.

Client-centered Therapists

Therapists who practice a form of psychotherapy that emphasizes the importance of the therapeutic relationship and the client's potential for self-directed growth.

Nonverbal Behaviors

Forms of communication without the use of spoken language, including gestures, facial expressions, and body language.