The Management of Woznick Corporation Has Been Concerned for Some

question 154

Multiple Choice

The management of Woznick Corporation has been concerned for some time with the financial performance of its product V86O and has considered discontinuing it on several occasions. Data from the company's accounting system for this product for last 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 $30,000 of the fixed manufacturing expenses and $13,000 of the fixed selling and administrative expenses are avoidable if product V86O is discontinued.
-According to the company's accounting system,what is the net operating income earned by product V86O? Include all costs in this calculation-whether relevant or not.

• A) $78,000
• B) ($5,000)
• C) ($78,000)
• D) $5,000

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Definitions:

Product Launch Press Conferences

Events organized to officially introduce a new product to the market, often attended by the media, industry analysts, and other stakeholders.

Highly Detailed Pitches

Targeted proposals or presentations often delivered to media outlets, detailing a story idea or product with extensive information to garner interest.

Timely Information

Relevant data or knowledge promptly delivered or obtained, crucial for decision-making processes.

Media Relations

The systematic effort to manage interactions and build relationships between an organization and the media to facilitate accurate coverage.