Better Bonds
Better Bonds Provided the Following Data -Refer to Woods Company

question 12

Multiple Choice

Better Bonds
Better Bonds provided the following data: $\begin{array}{lr}\text { Sales } & \$ 540,000 \\\text { Variable costs } & \$ 378,000 \\\text { Fixed costs } & \$ 120,000 \\\text { Expected production and sales in units } & 40,000\end{array}$
-Refer to Woods Company. What is the revised expected operating income for the coming year?

• A) $62,400
• B) $180,000
• C) $222,000
• D) $360,000

---

Definitions:

Additional Slice

A term that can refer to an extra serving or portion of a good or product beyond what is normally consumed.

Marginal Benefits

The additional satisfaction or utility that a person gains from consuming an additional unit of a good or service.

Marginal Costs

The cost added by producing one additional unit of a product or service.

Producing

The process of creating goods or services to be offered to the market.