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

question 222

Multiple Choice

Use the information below to answer the following question(s) :
The following information relates to current production of bench seats for boats at Aquamarine Manufacturing:

The regular selling price per bench seat is $200. The company has the capacity to produce 15,000 bench seats per year, but is currently producing and selling 10,000 bench seats per year.
-Aquamarine Manufacturing is analyzing the opportunity to accept a special sales order for 2,000 bench seats at a price of $150 per unit. Fixed costs would remain unchanged. The variable marketing and administrative costs of $30 per unit would NOT be incurred on this special order. Regular sales will not be affected by the special order. If the company were to accept this special order, how would operating income be affected?

• A) Decrease by $96,000
• B) Decrease by $36,000
• C) Increase by $96,000
• D) Increase by $36,000

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Definitions:

Cognitive

Pertaining to the mental processes involved in gaining knowledge and comprehension, including thinking, knowing, remembering, and judging.

Nonverbal Behavior

Communication without words, including gestures, facial expressions, body language, and other forms of expressing oneself without verbal language.

Monitoring

The ongoing process of observing and checking the progress or quality of something over a period of time.

Eye Contact

The act of looking directly into another person's eyes, which can communicate various messages or emotions non-verbally.