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:

Big Data

Extremely large data sets that may be analyzed computationally to reveal patterns, trends, and associations, especially relating to human behavior and interactions.

Volume

The amount of data generated.

Point Estimate

A single value estimate or guess of a population parameter based on sample data.

Sampling Error

The difference between the population parameter and the sample statistic due to chance variation in selecting a sample.