Black Productions Has Three Models: D, E, and F

question 120

Multiple Choice

Black Productions has three models: D, E, and F. The following information is available: Black Productions is thinking of discontinuing model F because it is reporting an operating loss. All fixed costs are unavoidable. Assuming Black Productions discontinues line F and is able to double the production and sales of model E without increasing fixed costs. What effect will this have on operating income?

• A)Increase $10,000
• B)Decrease $10,000
• C)Increase $26,000
• D)Decrease $26,000

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Definitions:

Sociosexuality

Sociosexuality refers to individual differences in the willingness to engage in sexual activity outside of a committed relationship, reflecting variations in sexual behavior and attitudes.

Relationship Maintenance

Activities and actions individuals and couples take to preserve and enhance the quality and stability of their interpersonal relationships.

Parenting Behaviors

Actions and practices employed by individuals in their role as parents which influence the physical, emotional, social, and intellectual development of their child.

Sociosexuality

An individual's willingness to engage in sexual activity outside of a committed relationship, reflecting variations in sexual attitudes and behaviors among people.