Corn Crunchers Has Three Product Lines

question 34

Multiple Choice

Corn Crunchers has three product lines.Its only unprofitable line is Corn Nuts, the results of which appear below for 2012: If this product line is eliminated, 30% of the fixed expenses can be eliminated.How much are the relevant costs in the decision to eliminate this product line?

• A)$54,000
• B)$410,000
• C)$335,000
• D)$284,000

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Definitions:

Cognitive Development

The process by which individuals acquire and understand knowledge, evolve reasoning and problem-solving abilities, and adaptively apply cognitive skills throughout their lives.

Interaction

A mutual or reciprocal action or influence between entities, often studied in social and behavioral sciences.

Personal Fable

An exaggerated sense of personal uniqueness and indestructibility, which may be the basis for adolescent risk taking.

Autonomy

The capacity to make an informed, uncoerced decision independently, often used in the context of moral, ethical, or self-governing practices.