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Use the Information Below to Answer the Following Question(s)

question 20

Multiple Choice

Use the information below to answer the following question(s) .
Following a strategy of product differentiation, Luke Company makes a high-end Appliance, AP15. Luke Company presents the following data for the years 1 and 2.
Luke Company produces no defective units but it wants to reduce direct materials usage per unit of AP15 in year 2. Manufacturing conversion costs in each year depend on production capacity defined in terms of AP15 units that can be produced. Selling and customer-service costs depend on the number of customers that the customer and service functions are designed to support. Neither conversion costs or customer-service costs are affected by changes in actual volume. Luke Company has 46 customers in year 1 and 50 customers in year 2. The industry market size for high-end appliances increased 5% from year 1 to year 2.
-What is the change in operating income from year 1 to year 2?

Recognize the role of self-awareness and self-talk in contributing to and resolving conflicts.

Identify effective prevention strategies for escalating conflicts.

Understand the definition and formation of concepts, including the role of attributes and examples.

Grasp the theories and contributions of significant psychologists (e.g., Tolman and Seligman) to the field of learning.

Definitions:

Percentage Change

A mathematical calculation that describes the degree of change over time, expressed as a fraction of the starting value.

Price Of Product

The monetary value assigned to a good or service that consumers are required to pay to acquire it.

Quantity Demanded

The total amount of a good or service that consumers are willing to purchase at a given price level in a specific time period.

Midpoint Formula

A method used in geometry to determine the exact center point between two defined points on a line segment.