Centric Sail Makers Manufactures Sails for Sailboats

question 98

Multiple Choice

Centric Sail Makers manufactures sails for sailboats.The company has the capacity to produce 35,000 sails per year,and is currently producing and selling 25,000 sails per year.The following information relates to current production:
- If a special sales order is accepted for 5,500 sails at a price of $150 per unit,and fixed costs remain unchanged,what is the change in operating income? (Assume the special sales order will require variable manufacturing costs and variable marketing and administrative costs.)

• A)Operating income decreases by $825,000.
• B)Operating income increases by $825,000.
• C)Operating income decreases by $385,000.
• D)Operating income increases by $385,000.

---

Definitions:

Mental Health

A state of well-being in which individuals realize their own abilities, can cope with the normal stresses of life, work productively, and contribute to their community.

Socialization

is the process through which individuals learn and adopt the norms, values, behaviors, and social skills appropriate to their society or social group.

Program Activities

Specific actions, events, or operations designed to fulfill the objectives of a program or initiative.

Self-Help

A strategy or support system, often involving books, groups, or online resources, that individuals use to try to solve personal problems or achieve personal growth without the direct supervision of professionals.