Karlson Roller Skates Has Three Product Lines-D,E,and F The Company Is Deciding Whether to Drop Product Line F

question 46

Multiple Choice

Karlson Roller Skates has three product lines-D,E,and F.The following information is available: $\begin{array}{|l|r|r|r|} \hline& \text { D } & \text { E } & \text { F } \\\hline \text { Sales revenue } & \$ 80,000 & \$ 50,000 & \$ 31,000 \\\hline \text { Variable costs } & (20,000 & \underline{(5000} & (10,000) \\\hline \text { Contribution margin } & \$ 60,000 & \$ 45,000 & \$ 21,000 \\\hline \text { Fixed costs } & (15,000) & (5000) & (23,000) \\\hline \text { Operating income (loss) } & \$ 45,000 & \$ 40,000 & \$(2000) \\\hline\end{array}$ The company is deciding whether to drop product line F because it has an operating loss.Assuming fixed costs are unavoidable,if Karlson drops product line F and rents the space formerly used to produce product F for $18,000 per year,total operating income will be ________.

• A) $10,000
• B) $80,000
• C) $21,000
• D) $23,000

Recognize the influence of environment and genetics on personality and traits.

Identify the connection between neurological structures and cognitive functions.

Explain the structure and function of neurons and the importance of myelin sheaths.

Understand the basic concepts and terminology related to neurons and neurotransmitters.

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