A Company Is Considering Eliminating a Product Line

question 115

Multiple Choice

A company is considering eliminating a product line. The fixed costs currently allocated to the product line will be allocated to other product lines upon discontinuance. If the product line is discontinued

• A) total net income will increase by the amount of the product line's fixed costs.
• B) total net income will decrease by the amount of the product line's fixed costs.
• C) the contribution margin of the product line will indicate the net income increase or decrease.
• D) the company's total fixed costs will decrease.

---

Definitions:

False Recollection

The misremembering or distortion of a memory, often with high confidence in the inaccurate details.

Ferocious Dog

A highly aggressive and intimidating dog, often due to training, instinct, or poor socialization, that may pose a threat to humans or other animals.

Dreamed

The experience of envisioned images, sounds, or other sensations during sleep.

Reconsolidation

The process by which memories, once recalled, are stored again for long-term storage, potentially allowing for their modification.