Assume That Discontinuing Product J Would Result in a $30,000

question 6

Multiple Choice

Assume that discontinuing Product J would result in a $30,000 increase in the contribution margin of other product lines.If Bingham chooses to discontinue Product J,then the change in net income next year due to this action will be a:

• A) $145,000 decrease.
• B) $5,000 increase.
• C) $120,000 increase.
• D) $145,000 increase.

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Definitions:

Normal Distribution

A symmetrical, bell-shaped distribution of data in which most of the data points are concentrated around the mean, with the tails of the distribution tapering off symmetrically at both ends.

Persons

Human beings considered individually or collectively, often in relation to social or legal contexts.

Bell Curve

A graphical depiction of a normal distribution, where most occurrences take place near the mean and fewer occur as you move away from the mean.

Psychological Characteristics

Attributes of an individual's mental and emotional state that determine their thoughts, feelings, and behaviors.