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.

Grasp the role of norms in guiding member behavior within a team.

Learn how to leverage technology to improve collaborative processes.

Comprehend the fundamental concept of collaboration and its significance in addressing complex challenges.

Understand the use of digital tools to provide equal access to resources and information for all team members.

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Definitions:

Optimist

A person inclined to anticipate the best possible outcome, maintaining a hopeful and positive outlook on life and future events.

Pessimist

An individual who tends to see the worst aspect of things or believe that the worst will happen.

Reactivity

The tendency of individuals to change their behavior in response to being observed or knowing they are being studied.

Hardiness

A personality trait characterized by a sense of control, commitment, and challenge in the face of stress, acting as a buffer against stress-related disorders.