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:

Deferred Imitation

The ability to replicate an action or behavior after a delay, indicating memory and cognitive development.

Sensorimotor Conditioning

A learning process in young children that involves mastering the integration of sensory information with motor responses, fundamental to cognitive development.

Organized Patterns

Structured sequences or arrangements of ideas, actions, or events that follow a consistent and recognizable order.

Circular Reactions

Repetitive behaviors in young children that serve to explore their environment and understand cause-and-effect relationships, part of cognitive development.