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

question 196

Multiple Choice

Use the information below to answer the following question(s) :
Woodson Corporation provided the following information regarding its only product:

-Assuming there is excess capacity at Woodson Corporation, what would be the effect on operating income of accepting a special order for 1,200 units at a sale price of $60 per product assuming additional fixed manufacturing overhead costs of $5,000 is incurred? (NOTE: Assume regular sales are not affected by the special order.)

• A) Increase by $72,000
• B) Decrease by $2,800
• C) Increase by $7,800
• D) Increase by $2,800

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Definitions:

Laboratory Data

Information and results obtained from experiments, tests, and analyses carried out in a controlled, scientific setting.

Admission Diagnosis

The initial diagnosis made when a patient is admitted to a hospital, serving as the basis for treatment and management.

History and Physical

The comprehensive process of gathering a patient's medical history and performing a physical examination to guide diagnosis and treatment.

Health Care Law

A field of law that deals with the regulations, policies, and legal principles applicable to the health care industry, providers and patients.