Abel Company Produces Three Versions of Baseball Bats: Wood, Aluminum

question 136

Multiple Choice

Abel Company produces three versions of baseball bats: wood, aluminum, and hard rubber. A condensed segmented income statement for a recent period follows: $\begin{array}{lrrrr}&\text { Wood } & \text { Aluminum } &\text { Hard Rubber }& \text { Total }\\\hline\text { Sales } & \$ 500,000 & \$ 200,000 & \$ 65,000 & \$ 765,000 \\\text { Variable expenses } & 325,000 & 140,000 & 58,000 & 523,000 \\\text { Contribution margin } & 175,000 & 60,000 & 7,000 & 242,000 \\\text { Fixed expenses } & 75,000 & 35,000 & 22,000 & 132,000 \\\text { Net income (loss) }&\$100,000&\$25,000&\$15,000&\$110,000\end{array}$ Assume all of the fixed expenses for the hard rubber line are avoidable. What will be total net income if the line is dropped?

• A)$125,000
• B)$103,000
• C)$105,000
• D)$140,000

Recognize the factors and forces driving changes in supply chain management.

Describe best practices in supply chain management and their impact on efficiency.

Explain the role of information flow in enhancing supply chain performance.

Understand the global impact on supply chains and the importance of sustainability practices.

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Definitions:

Information Processing Model

A cognitive approach to understanding how the human mind transforms sensory information, involving stages such as encoding, storage, and retrieval of information.

Memory

The mental process of encoding, storing, and retrieving information.

Computer

An electronic device designed to accept data, perform prescribed mathematical and logical operations at high speed, and display the results of these operations.

Event

An occurrence, situation, or incident that takes place, which can be significant or ordinary, influenced by various factors and having potential consequences or outcomes.