The Following Information Relates to Current Production of Bench Seats

question 11

Multiple Choice

The following information relates to current production of bench seats for boats at Aquamarine Manufacturing: $$\begin{array} { | l | c c | } \hline \text { Variable manufacturing costs per unit } & \$ & 102.00 \\\hline \text { Tatal fixed manufacturing costs } & \$ & 525,000 \\\hline \text { Variable marketing and administrative costs per unit } & \$ & 30.00 \\\hline \text { Total fixed marketing and adrinistrative costs } & \$ &250,000 \\\hline\end{array}$$
-The regular selling price per bench seat is $200.00.The company is analyzing the opportunity to accept a special sales order for 2,000 bench seats at a price of $150.00 per unit.Fixed costs would remain unchanged.The variable marketing and administrative costs of $30.00 per unit would NOT be incurred on this special order.The company has the capacity to produce 15,000 bench seats per year,but is currently producing and selling 10,000 bench seats per year.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 $96,000
• B)Decrease by $36,000
• C)Increase by $96,000
• D)Increase by $36,000

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Definitions:

Active Listening

A communication technique involving giving full attention to the speaker, understanding their message, providing feedback, and responding appropriately.

SBAR Model

A communication protocol used in healthcare for a structured method of communication that stands for Situation, Background, Assessment, and Recommendation.

Communication with Physician

The exchange of information, concerns, and questions between patients and their doctors to enhance healthcare outcomes.

Effective Communication

The ability to convey information to another effectively and efficiently, often considered a key skill in both personal and professional settings.