Debt securities not classified as held-to-maturity or trading securities. Companies report available-for-sale securities at fair value, but do not report changes in fair value as part of net income until after they sell the security. Interest on available-for-sale securities is recorded when earned. Unrealized holding gains and losses on available-for-sale debt securities are recognized as other comprehensive income and as a separate component of stockholders' equity.

Centric Sail Makers manufactures sails for sailboats

The company has the capacity to produce 36,000 sails per year and is currently producing and selling 30,000 sails per year. The following information relates to current production: Sales price per unit $180 Variable costs per unit: Manufacturing $60 Selling and administrative $20 Total fixed costs: Manufacturing $675,000 Selling and administrative $300,000 If a special pricing order is accepted for 5,500 sails at a sales price of $160 per unit, and fixed costs remain unchanged, what is the change in operating income? (Assume the special pricing order will require variable manufacturing costs and variable selling and administrative costs.) A) Operating income decreases by $880,000. B) Operating income increases by $880,000. C) Operating income decreases by $440,000. D) Operating income increases by $440,000.

Debbie taught a very popular Pilates class at Local Fitness Center. The class was always filled and had a long waiting list of people who wanted to enroll. When an opening became available, Debbie mailed an offer to May, the first person on the waiting list. The offer said that May should accept the offer by sending a check for $75 payable to Debbie. May did not respond to the offer, but her roommate June saw the offer on May's desk and sent Debbie a check for $75. Is there a contract between June and Debbie?

a. No, there is no contract because the offer was not communicated to June. b. No, there is no contract because the offer was not sufficiently definite. c. No, there is no contract because the offer did not evidence a present commitment d. Yes, there is a contract