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

question 171

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 2,500 bench seats at a price of $155 per unit. Fixed costs would increase by $10,000. 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 $57,500
• B) Increase by $57,500
• C) Decrease by $47,500
• D) Increase by $47,500

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Definitions:

Co-Leader

An individual who shares leadership responsibilities with another leader in guiding a group, organization, or initiative.

Biasing Data

The act of influencing or skewing information in a way that distorts the truth or accuracy of the data.

Simulations

The act of imitating the operation of a real-world process or system over time for the purpose of training, analysis, or prediction.

Realistic Situations

Circumstances or scenarios that closely mimic real-life conditions, often used in simulations or training.