A Company Has Three Product Lines, One of Which Reflects

question 102

Multiple Choice

A company has three product lines, one of which reflects the following results: $$\begin{array} { l r } \text { Sales } & \$ 215,000 \\\text { Variable expenses } & 125,000 \\\text { Contribution margin } & 90,000 \\\text { Fixed expenses } & { 130,000 } \\\text { Net loss } & \$ ( 40,000 ) \end{array}$$ If this product line is eliminated, 60% of the fixed expenses can be eliminated and the other 40% will be allocated to other product lines.If management decides to eliminate this product line, the company's net income will

• A)increase by $40,000.
• B)decrease by $90,000.
• C)decrease by $12,000.
• D)increase by $12,000.

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Definitions:

Performance Reviews

Evaluations of an employee's work performance over a specific period of time, typically conducted by their supervisor.

Performance Reviews

Formal assessments in which the job performance of an employee is documented and evaluated, often leading to recommendations for improvement or promotion.

Terminating An Employee

The process of formally ending the employment of a worker, typically due to performance issues, organizational changes, or misconduct.

Negative Information

Data or facts that portray an individual, organization, or situation in an unfavorable or detrimental light.