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Answer the Following Questions Using the Information Below

question 35

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Answer the following questions using the information below:
Wingard Company makes a household appliance with model number X200. The goal for 2012 is to reduce direct materials usage per unit. No defective units are currently produced. Manufacturing conversion costs depend on production capacity defined in terms of X200 units that can be produced. The industry market size for appliances increased 10% from 2011 to 2012. The following additional data are available for 2011 and 2012:
Answer the following questions using the information below: Wingard Company makes a household appliance with model number X200. The goal for 2012 is to reduce direct materials usage per unit. No defective units are currently produced. Manufacturing conversion costs depend on production capacity defined in terms of X200 units that can be produced. The industry market size for appliances increased 10% from 2011 to 2012. The following additional data are available for 2011 and 2012:    -What is the net effect on operating income as a result of the price-recovery component? A) decreased operating income due to decreased selling price and inability to recover increased costs B) decreased operating income due to the inability to recover increased costs C) increased operating income due to the increased number of units produced and sold D) increased operating income due to the revenue effect of the price-recovery component
-What is the net effect on operating income as a result of the price-recovery component?

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Definitions:

Autocracy

A system of government in which absolute power is concentrated in the hands of a single ruler, often characterized by the lack of democratic processes or checks and balances.

Russian Doctrine

Typically refers to the foreign policy and military strategies pursued by Russia to project its power and secure its interests, often implying an assertive or aggressive stance towards the West.

Legislative Assembly

A governmental body with the power to make, amend, and repeal laws within a certain jurisdiction.

Eurocentric

A viewpoint that emphasizes Western civilization and the importance of European culture and history at the expense of those from other continents.

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