SmartCard Is Considering Eliminating One of Its Product Lines

question 31

Multiple Choice

SmartCard is considering eliminating one of its product lines.The fixed costs currently allocated to the product line will be allocated to other product lines upon discontinuance.What financial effects occur if the product line is discontinued?

• A)Net income will decrease by the amount of the contribution margin of the product line being discontinued.
• B)The company's total fixed costs will increase.
• C)Total fixed costs will decrease by the amount of the product line's fixed costs.
• D)Net income will decrease by the amount of the product line's fixed costs.

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Definitions:

Fractured Ribs

Breaks or cracks in the rib bones, often caused by trauma, which can result in pain, breathing difficulties, and a need for medical treatment.

Nursing Intervention

Actions taken by nurses to implement patient care plans, ranging from direct patient care to coordinating and monitoring the patient's condition.

Dressing Change

The act of removing an old wound covering and applying a new sterile dressing, which is crucial for preventing infection and promoting healing.

Plan Of Care

A detailed, prescribed healthcare strategy that addresses a patient's specific health issues.