Giant Company Has Three Products, A, B, and C

question 56

Multiple Choice

Giant Company has three products, A, B, and C. The following information is available:

Giant Company is thinking of dropping Product C because it is reporting a loss. Assuming Giant drops Product C and does NOT replace it, operating income will ________.

• A) increase by $3,400
• B) increase by $2,000
• C) decrease by $6,000
• D) decrease by $11,400

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Definitions:

Micro-Social Encounters

Direct, face-to-face interactions between individuals in small settings.

Social Construction

Social construction is the theory that many aspects of reality, including shared beliefs, identities, and norms, are created through collective social processes rather than being inherent or natural.

Biological Fact

A statement or principle that is empirically verifiable based on biological research and knowledge.

Ethnicity

A social construct that categorizes individuals based on common cultural characteristics such as language, religion, and customs.