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

question 48

Multiple Choice

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 Barry Company's operating income for year 1?

• A)$210,000
• B)$366,120
• C)$1,000,000
• D)$260,000
• E)$231,000

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Definitions:

HIV Infection

A virus that attacks the immune system, leading to AIDS if not treated, and is transmitted through certain body fluids like blood and semen.

Prevalence

The proportion of a population found to have a particular condition at a specific time.

Serconversion

The period during which specific antibodies develop and become detectable in the blood, indicating the presence of an infection.

Seeding

In a medical or environmental context, the act of introducing cells, organisms, or substances to a specific area to encourage growth or proliferation.