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

question 144

Multiple Choice

Use the information below to answer the following question(s) :
Pluto Incorporated provided the following information regarding its single product:

The regular selling price for the product is $80. The annual quantity of units produced and sold is 40,000 units (the costs above relate to the 40,000 units production level) . There was no beginning inventory.
-What would be the effect on operating income of accepting a special order for 1,500 units at a sale price of $50 per product assuming additional fixed manufacturing overhead costs of $10,000 are incurred? The company has excess capacity and regular sales will not be affected by this special order.

• A) Decrease by $42,000
• B) Decrease by $32,000
• C) Increase by $32,000
• D) Increase by $42,000

Recognize the effects of environmental factors on aggression.

Understand the role of cognitive biases and errors in perception and judgment.

Analyze the impact of first impressions and stereotypes on social interactions.

Understand the concept and examples of social influence and conformity.

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Definitions:

Repetition of a Game

In game theory, it refers to playing the same strategic game multiple times, which can impact the strategies and outcomes over time.

Axelrod's Experiments

A series of computer tournaments designed by Robert Axelrod to examine strategies in the iterated prisoner's dilemma.

Prisoners' Dilemma Game

The Prisoners' Dilemma Game is a standard example of a game analyzed in game theory that shows why two rational individuals might not cooperate, even if it appears that it is in their best interest to do so.

Nash Equilibrium

A concept in game theory where no player can benefit by changing strategies if other players keep their strategies unchanged.