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

question 114

Multiple Choice

Use the information below to answer the following question(s) .Big Island Coffee Co.produced and sold 120,000 units last year.Per unit revenue and costs were as follows:
Fixed manufacturing overhead and administrative salaries are fixed costs.The per unit amounts are based on last year's production.
-Calculate this year's operating income if the company plans to produce and sell 200,000 units.

• A)$460,000
• B)$0
• C)$<100,000>
• D)$900,000
• E)$980,000

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Definitions:

Prime Minister Winston Churchill

A prominent British statesman who served as the Prime Minister of the United Kingdom during World War II and again in the early 1950s, known for his leadership and oratory skills.

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Also known as the Smith-Connally Act of 1943, it allowed the U.S. government to seize and operate industries threatened by labor strikes that would interfere with war production during WWII.

Smith-Connally

Also known as the War Labor Disputes Act, a 1943 U.S. law that allowed the federal government to seize and operate industries threatened by labor strikes during WWII.

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