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question 23

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Use the information below to answer the following question(s) .
Following a strategy of product differentiation, Barry Company makes an XX 300. Barry Company presents the following data for the years 1 and 2.
Use the information below to answer the following question(s) . Following a strategy of product differentiation, Barry Company makes an XX 300. Barry Company presents the following data for the years 1 and 2.    Barry Company produces no defective units but it wants to reduce direct materials usage per unit of XX 300 in year 2. Manufacturing conversion costs in each year depend on production capacity defined in terms of XX 300 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. Barry Company has 23 customers in year 1 and 25 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? A)  $147,600 favourable B)  $143,520 favourable C)  $156,120 favourable D)  $156,120 unfavourable E)  $242,000 favourable Barry Company produces no defective units but it wants to reduce direct materials usage per unit of XX 300 in year 2. Manufacturing conversion costs in each year depend on production capacity defined in terms of XX 300 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. Barry Company has 23 customers in year 1 and 25 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?

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Definitions:

Experimental Counseling

The application of experimental research methods to test the efficacy of counseling techniques and interventions.

Process Research

Investigation focused on understanding the underlying mechanisms or processes that explain how or why something occurs.

Research Design

The framework or strategy for planning, conducting, and analyzing a research project.

Analogue

An object, tool, or method that simulates or imitates the features or functions of something else, often used in experimental settings.

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