The Management of Woznick Corporation Has Been Concerned for Some

question 13

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.
-What would be the financial advantage (disadvantage) from dropping product V86O?

• A) ($35,000)
• B) ($5,000)
• C) $35,000
• D) $5,000

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Definitions:

Congruence

The degree to which a person's self-concept and their experiences are aligned, often used in psychology to indicate authenticity and psychological health.

Unconditional Positive Regard

A concept in psychology where an individual is accepted and supported completely, without judgement or conditions.

Fully-functioning

Describes a person who is living at their fullest potential, emotionally, psychologically, and in relation to others.

Roger's Six Characteristics

Six qualities Carl Rogers identified as essential for a therapist to effectively facilitate client-centered therapy, including empathy and genuineness.