Brandy Company Is Deciding Whether or Not to Discontinue One

question 63

Multiple Choice

Brandy Company is deciding whether or not to discontinue one of its divisions.The division's contribution margin is $27,000 per year.The fixed costs charged to the division total $32,000, but $15,000 would be eliminated if the division is discontinued.If the division is eliminated, the overall operating income will

• A)decrease by $9,000.
• B)decrease by $12,000.
• C)decrease by $15,000.
• D)increase by $27,000.

Differentiate between individualistic and collectivist cultures with respect to self-conception.

Identify methods people employ to manage others’ impressions of them.

Analyze the relationship between self-esteem and behavior in different social contexts.

Understand the role of social validation and expressive self-presentation in forming one's identity.

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Definitions:

Capital

Refers to financial resources, assets, or funds a company or individual possesses for pursuing investment opportunities or operational activities.

Isoquants

Isoquants are curves representing combinations of inputs that yield the same level of output in production theory.

MRTS

Marginal Rate of Technical Substitution, the rate at which a firm can substitute one input for another while keeping the level of output constant.

Labor

The human effort, both physical and mental, that is used in the production of goods and services.