Studies reveal little support for the common sense belief that salespeople typically set their quotas low so they are easily achieved.

Potlatch Company manufactures sonars for fishing boats

Model 100 sells for $200. Potlatch produces and sells 5,000 units per year. Cost data are as follows: Variable manufacturing $95 per unit Variable selling and administrative $5 per unit Fixed manufacturing $270,000 per year Fixed selling and administrative $130,000 per year An offer has come in for a one-time sale of 300 units at a special price of $130 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? A) Operating income increases by $200. B) Operating income increases by $1,500. C) Operating income decreases by $10,500. D) Operating income increases by $10,500.

The following statement was made by an auditor with the internal audit office of Lexington Fayette Urban County Government (LFUCG) in an audit report on the Office of Homelessness Prevention & Intervention. Ordinance 102-2014, Sec-490 (0) states that the Board shall, "Submit annual reports on the activities of the Innovative and Sustainable Solutions to Homelessness Fund tot eh Mayor, the Urban County Council and the community." We were informed by the Administrative Officer of the OHPI and the Director of Grants & Special Programs (who was previously responsible for the OHPI) that the annual reports have not been submitted. This statement is an example of:

a) an effect. b) recommendation. c) a condition. d) a cause.