Cooper CoMakes and Uses 5,000 Components Each Year in Its Manufacturing

question 47

Multiple Choice

Cooper Co.makes and uses 5,000 components each year in its manufacturing operations.An outside supplier has offered to supply the components to Anderson at $66 per unit.Anderson's production costs are as follows: If Cooper accepts the order,$8 of fixed overhead per unit will be eliminated.
-If Cooper accepts the order,$8 of fixed overhead per unit will be eliminated.
If the offer is accepted,operating income will

• A)increase by $100,000.
• B)decrease by $70,000.
• C)decrease by $30,000.
• D)increase by $60,000.

---

Definitions:

Older Adulthood

A stage of life typically associated with retirement, marked by changes in physical health, cognitive function, and social roles.

Childhood

The stage of life that spans from infancy to puberty, characterized by growth, exploration, and learning.

Sickle Cell Allele

A variant of a gene associated with sickle cell anemia, a genetic disorder affecting the shape and function of red blood cells.

Malarial Infection

A disease caused by the Plasmodium parasite, transmitted by the bite of infected Anopheles mosquitoes.