Anderson Co

question 81

Multiple Choice

Anderson 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 Anderson 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.

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Definitions:

Freedom

The privilege or capacity to operate, communicate, or speculate without being hampered or constricted.

Columbian Exchange

The widespread transfer of plants, animals, culture, human populations, technology, diseases, and ideas between the Americas and the Old World following Columbus's voyages.

Coverture

A legal doctrine whereby, upon marriage, a woman's legal rights and obligations were subsumed by those of her husband, according to common law.

Mestizos

Individuals of mixed European and Indigenous American descent, a term primarily used in Latin America to describe a major cultural and demographic group.