The Following Information Relates to Current Production of Bench Seats

question 115

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 2,500 bench seats at a price of $155.00 per unit.Fixed costs would increase by $10,000.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 $57,500
• B)Increase by $57,500
• C)Decrease by $47,500
• D)Increase by $47,500

---

Definitions:

Family Involvement

The active participation and engagement of family members in the educational and developmental processes of their children.

Community Partners

Organizations or groups that collaborate with others to achieve shared goals, often in social, educational, or environmental initiatives.

Significant Disabilities

Disabilities that are profound and have a major impact on an individual's ability to perform daily life activities.

Community Resources

Refers to local services and organizations that support the well-being of individuals and families within a community, such as libraries, health clinics, and food banks.