Gata CoPlans to Discontinue a Department That Has a $48,000 Contribution

question 67

Multiple Choice

Gata Co.plans to discontinue a department that has a $48,000 contribution margin and $96,000 of fixed costs.Of these fixed costs,$42,000 cannot be avoided.What would be the effect of this discontinuance on Gata's overall net operating income?

• A) Increase of $6,000.
• B) Decrease of $6,000.
• C) Increase of $48,000.
• D) Decrease of $48,000.

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Definitions:

Diastereotopic

Describes hydrogen atoms (or groups) in a molecule that are not equivalent in the three-dimensional space, causing different chemical shifts in NMR spectroscopy.

Enantiotopic

Refers to two groups or atoms in a molecule that are mirror images of each other but are not superimposable, commonly used in stereochemistry.

Internal Reference

A benchmark or standard within an experiment or measurement against which other data or results are compared or calibrated.

Deshielded Proton

A proton in an NMR spectrum that appears at lower field due to its electron cloud being less shielded from external magnetic fields, often indicating an electron-withdrawing group nearby.