Product U23N Has Been Considered a Drag on Profits at Jinkerson

question 90

Multiple Choice

Product U23N has been considered a drag on profits at Jinkerson Corporation for some time and management is considering discontinuing the product altogether.Data from the company's budget for the upcoming year appear below:
In the company's accounting system all fixed expenses of the company are fully allocated to products.Further investigation has revealed that $144,000 of the fixed manufacturing expenses and $93,000 of the fixed selling and administrative expenses are avoidable if product U23N is discontinued.The financial advantage (disadvantage) for the company of eliminating this product for the upcoming year would be:

• A) $15,000
• B) $143,000
• C) ($143,000)
• D) ($15,000)

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Definitions:

Code Of Ethics

The tool with which the owner of a business communicates ethical expectations to everyone associated with the business.

Environmental Analysis

The process of evaluating the external factors affecting an organization's operation, such as political, economic, social, and technological factors.

National And International

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Proposed Business Owners

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