Assume that a special pricing order is accepted for 5600 sails at a sales price of $150 per unit. This special order requires both variable manufacturing and variable selling and administrative costs, as well as incremental fixed costs of $400,000. What will be the impact on operating income?

Saltwater Sail Makers manufactures sails for sailboats. The company has the capacity to produce 36,000 sails per year and is currently producing and selling 25,000 sails per year. The following information relates to current production:







A) Operating income decreases by $380,800.

B) Operating income decreases by $19,200.

C) Operating income increases by $380,800.

D) Operating income increases by $19,200.


B) Operating income decreases by $19,200.

Business

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A building with an appraisal value of $250,000 is made available at an offer price of $180,000 . The purchaser acquires the property for $35,000 in cash, a 90-day note payable for $65,000, and a mortgage amounting to $63,000 . The cost basis recorded in the buyer's accounting records to recognize this purchase is

a. $250,000 b. $180,000 c. $163,000 d. $100,000

Business

Why did the Obama administration join other democratic governments in deploying "shadow" Internet and mobile phone systems against other governments?

A) to stop them from pirating copyrighted material from the United States B) to test new technologies for the intelligence community C) to undermine repressive government attempts to censor dissidents D) to warn them that their behavior would not be tolerated

Business

In the early part of a product's life cycle, it faces greater competition from indirect competitors

than from direct competitors. Indicate whether the statement is true or false

Business

________ describes technical or specialized terms used within a particular field such as insurance, law, or medicine

Fill in the blank(s) with correct word

Business