State Road Fabricators Inc

question 217

Multiple Choice

State Road Fabricators Inc. is considering eliminating Model A02777 because of losses over the past quarter. The past three months of information for Model A02777 are summarized below:

Overhead costs are 75% variable and the remaining 25% is depreciation of special equipment for model A02777 that has no resale value.
If Model A02777 is dropped from the product line, operating income will ________.

• A) increase by $80,000
• B) decrease by $117,500
• C) increase by $37,500
• D) decrease by $80,000

---

Definitions:

Standardized Personality Tests

Psychological assessments designed to measure and evaluate various aspects of a person's character and temperament using consistent and uniform procedures.

Positive Self-concept

An individual's perception of themselves in a favorable light, emphasizing strengths and positive qualities.

Actual Self

An individual's perception of their own attributes and characteristics at the present time.

Ideal Self

Represents an individual's conception of how they would like to be or what they strive to become.