Moore Manufacturing Has Two Major Product Lines, Gidgets and Gadgets

question 3

Multiple Choice

Moore Manufacturing has two major product lines, Gidgets and Gadgets. Income statements for the two product lines follow: If the Gidget product line were dropped, all of its product line fixed costs could be avoided. Should the Gidget product line be dropped, and why?

• A) Yes, profits increase $75,000
• B) No, profits decrease $45,000
• C) No, profits decrease $55,000
• D) No, profits decrease $175,000

---

Definitions:

Thanatos

In Freudian psychoanalysis, the death drive opposing Eros (the life drive), symbolizing an instinctive attraction to death and self-destruction.

Libido

In psychoanalytic theory, the energy of the sexual drive as a component of the life instinct.

Freud

Sigmund Freud was an Austrian neurologist who founded psychoanalysis, a clinical method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Psychosexual Development

Freud's theory that child development occurs in a series of fixed stages, each characterized by sexual interest and pleasure centered on a particular area of the body.