The Management of Bonga Corporation Is Considering Dropping Product D74F

question 23

Multiple Choice

The management of Bonga Corporation is considering dropping product D74F. Data from the company's accounting system for this product for last year appear below: All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $111,000 of the fixed manufacturing expenses and $103,000 of the fixed selling and administrative expenses are avoidable if product D74F is discontinued.According to the company's accounting system, what is the net operating income earned by product D74F? Include all costs in this calculation-whether relevant or not.

• A) ($58,000)
• B) ($440,000)
• C) $58,000
• D) $440,000

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Definitions:

Moral Panic

The reaction of a group based on the false, distorted, or exaggerated perception that some group or behaviour threatens the well-being of society.

Sensationalized Stories

Tales or news reports exaggerated or skewed to provoke interest or excitement at the expense of accuracy.

Dangerous Panhandlers

Refers to the public or media perception of street beggars as potential threats to safety, often influencing policy and social attitudes.

Biological Criminology

An area of criminology that investigates biological factors as potential causes of criminal behavior.