Corn Crunchers Has Three Product Lines If This Product Line Is Eliminated, 30% of the Fixed

question 62

Multiple Choice

Corn Crunchers has three product lines.Its only unprofitable line is Corn Nuts, the results of which appear below for 2013: $$\begin{array} { l r } \text { Sales } & \$ 1,400,000 \\\text { Variable expenses } & 920,000 \\\text { Fixed expenses } & 600,000 \\\text { Net loss } & \$ ( 120,000 ) \end{array}$$ 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)$180,000
• B)$1,520,000
• C)$1,340,000
• D)$1,100,000

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Definitions:

Repression

The psychological defense mechanism of unconsciously blocking unpleasant feelings, desires, or experiences from awareness.

Reconsolidation

The neural process involved when memories are recalled and then stored again for retrieval, which may lead to changes or alterations in the original memory.

Previously Stored Memories

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Online Banking Password

A secure string of characters used to authenticate and gain access to an individual's bank account over the internet, ensuring the privacy and protection of financial information.