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

question 45

Multiple Choice

Use the information below to answer the following question(s) :
Clear Sky Sailmakers manufactures sails for sailboats. The company has the capacity to produce 15,000 sails per year, but is currently producing and selling 10,000 sails per year. The following information relates to current production:

-If Clear Sky Sailmakers accepts a special order for 3,000 sails at a price of $215 per unit, fixed costs remain unchanged, and no variable marketing and administrative costs will be incurred for this order, how would operating income be affected? (NOTE: Assume regular sales are not affected by the special order.)

• A) Increase by $50,000
• B) Increase by $150,000
• C) Increase by $0
• D) Decrease by $50,000

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Definitions:

Regulating Distress

The process of managing and controlling negative emotions or stress to maintain psychological well-being.

Adaptive Change

Adjustments made in response to new conditions, challenges, or opportunities, requiring flexibility and innovation.

Leader's Responsibility

The obligations and duties a leader has to guide and protect those under their leadership.

Adaptive Behavior

Involves adjusting effectively to new or changing environments and situations, demonstrating flexibility and resilience.