Wedding Supply Is Trying to Decide Whether or Not to Continue

question 50

Multiple Choice

Wedding Supply is trying to decide whether or not to continue distributing reception supplies. The following information is available for Wedding Supply's business segments. $\begin{array}{lrrr}&\text { ReceptionSunplies}&\text { BridaL Dresses}&\text { EloraL Decorations }\\\text { Sales } & \$ 160,000 & \$ 110,000 & \$ 210,000 \\\text { Variable costs } & 84,000 & 50,000 & 120,000 \\\hline \text { Contribution margin } & 76,000 & 60,000 & 90,000 \\\text { Direct fixed costs } & 50,000 & 20,000 & 25,000 \\\text { Allocated common fixed costs } & 30,000 & 25,000 & 30,000 \\\text { Net income }&(\$4,000) &\$15,000&\$35,000\end{array}$ If reception supplies are dropped, floral decorations sales are expected to increase by 20%. What impact will the increase in floral decorations have on overall profitability?

• A) Income will increase by $7,000.
• B) Income will increase by $16,000.
• C) Income will decrease by $18,000.
• D) Income will decrease by $8,000.

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Definitions:

Paradoxical Theory of Change

A theory suggesting that genuine change occurs not when an individual attempts to be who they are not but rather when they become more fully who they already are.

Person of the Counselor

Refers to how a counselor's personality, beliefs, values, and life experiences influence their professional practice.

Authentic Expression

The genuine and honest sharing of thoughts, feelings, and experiences, often considered crucial for meaningful interpersonal connections and mental health.

Confront

To face or challenge something directly, often used in therapeutic contexts to describe addressing difficult or painful emotions and realities.