A Study Has Been Conducted to Determine If Product a Should

question 17

Multiple Choice

A study has been conducted to determine if Product A should be dropped.Sales of the product total $200,000 per year;variable expenses total $140,000 per year.Fixed expenses charged to the product total $90,000 per year.The company estimates that $40,000 of these fixed expenses will continue even if the product is dropped.These data indicate that if Product A is dropped,the company's overall net operating income would:

• A)decrease by $20,000 per year
• B)increase by $20,000 per year
• C)decrease by $10,000 per year
• D)increase by $30,000 per year

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Definitions:

Consciousness

The state of being awake and aware of one's surroundings, thoughts, feelings, and experiences.

Illness Anxiety Disorder

A chronic condition characterized by excessive worry about having a serious, undiagnosed medical illness despite few or no symptoms.

Cognitive-Behavioral

A therapeutic approach that addresses dysfunctional emotions, maladaptive behaviors, and cognitive processes through a number of goal-oriented, explicit systematic procedures.

Malingering

Intentionally faking illness to achieve some external gains, such as financial compensation or military deferment.