What Will Most Likely Occur If a Company Eliminates an Unprofitable

question 199

Multiple Choice

What will most likely occur if a company eliminates an unprofitable segment when a portion of fixed costs are unavoidable?

• A) All expenses of the eliminated segment will be eliminated.
• B) Net income will decrease.
• C) Net income will increase.
• D) The company's variable costs will increase.

---

Definitions:

Agitated

A state of increased restlessness or excitement, often displaying as physical or verbal outbursts, which can indicate distress or discomfort.

Lorazepam

A benzodiazepine medication commonly prescribed for anxiety, insomnia, seizures, and sedation prior to surgery or medical procedures.

Calming Music

Music specifically composed or selected to reduce anxiety, stress, and promote relaxation.

Xerostomia

A condition characterized by dry mouth resulting from reduced or absent saliva flow, often causing discomfort and difficulty in eating and speaking.