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

question 132

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 productivity component of change in operating income?

• A)$31,620 favourable
• B)$11,120 favourable
• C)$11,120 unfavourable
• D)$33,520 favourable
• E)$33,520 unfavourable

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Definitions:

Gluc/o

A word root used in the medical field to refer to sugar, particularly glucose, which is a primary source of energy for the body's cells.

Parathyroid Glands

Small endocrine glands located in the neck behind the thyroid, which regulate calcium levels in the blood and bone metabolism.

Thyroid Gland

An endocrine gland in the neck that produces hormones regulating the body's metabolic rate, heart and digestive function, muscle control, brain development, and bone maintenance.

Poison

A substance that is capable of causing illness or death when introduced into the body.