Centric Sail Makers Manufactures Sails for Sailboats

question 146

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,fixed costs remain unchanged,and there are no variable marketing and administrative costs for this order,what is the change in operating income?

• A)Operating income decreases by $385,000.
• B)Operating income decreases by $495,000.
• C)Operating income increases by $385,000.
• D)Operating income increases by $495,000.

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Definitions:

True Intimacy

A deep, authentic connection between individuals, characterized by mutual understanding, vulnerability, and emotional closeness.

Dying Stages

Refers to a model, often the Kübler-Ross model, describing stages of emotional and psychological adjustment to death.

Elizabeth Kübler-Ross

A psychiatrist known for proposing the five stages of grief model: denial, anger, bargaining, depression, and acceptance.

DABDA

An acronym for the five stages of grief as outlined by Elisabeth Kübler-Ross, which stands for Denial, Anger, Bargaining, Depression, and Acceptance.