An offer has come in for a one-time sale of 300 units at a special price of $120 per unit. The marketing manager says that the sale will not affect the company's regular sales activities, and that it will not require any variable selling and administrative costs. The production manager says that there is plenty of excess capacity and the sale will not impact fixed costs in any way. What is the effect of this deal on operating income?

Pisces Company manufactures sonars for fishing boats. Model 100 sells for $400. Pisces produces and sells 5000 units per year. Cost data are as follows:







A) Operating income increases by $400.

B) Operating income increases by $1800.

C) Operating income decreases by $6000.

D) Operating income increases by $6000.


D) Operating income increases by $6000.

Business

You might also like to view...

Only the nonprobability sampling techniques can be implemented using both types of Internet panels

Indicate whether the statement is true or false

Business

Customer service performance should be measured how often?

a. Neither frequently nor infrequently b. Infrequently c. Frequently d. Never

Business

Answer the following statement(s) true (T) or false (F)

1. Ingratiation influence tactics generally has a low effectiveness level. 2. Apparent sincerity is a dimension of political skill. 3. Coalition building is a proactive influence tactic that establishes your authority to make a decision or request. 4. Pressure is a proactive influence tactic that establishes your authority to make a decision or request. 5. The pressure influence tactic uses demands, threats, or warnings.

Business

Explain the essential differences between general purpose and special purpose governments and give several examples of each.

What will be an ideal response?

Business