Laurel Inc Management Is Considering Dropping Product Line C

question 60

Multiple Choice

Laurel Inc.has three product lines: A,B,and C.
$\begin{array}{lr}&\underline{\text { A }} &\underline{\text { B }} &\underline{ \text { C }} &\underline{ \text { Total }}\\ \text { Sales } &\$20000&\$35000&\$22000&\$77000\\ \text { Variable costs } &\underline{8000}&\underline{10000}&\underline{14000}&\underline{32000}\\ \text {Contribution margin } &12000&25000&8000&45000\\ \text { Fixed costs} &\underline{4000}&\underline{11000}&\underline{9000}&\underline{24000}\\ \text { Net income} &\underline{\$8000}&\underline{\$14000}&\underline{\$(1000) }&\underline{\$21000}\\ \text { } &\\\end{array}$


Management is considering dropping product line C.If it is discontinued,one-half of its fixed costs can be avoided.The discontinuation of product line C would:

• A) decrease net income by $3500.
• B) increase net income by $1000.
• C) decrease net income by $12 500.
• D) increase net income by $4500.

Understand the concept of globalization and its impact on cultures and economies worldwide.

Gain insight into various theoretical frameworks used to analyze globalization such as modernization theory, dependency theory, and conflict theory.

Identify the effects of cultural homogenization and heterogenization due to globalization.

Recognize the role and influence of global justice movements and their opposition to aspects of globalization.

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Definitions:

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Rubens

Peter Paul Rubens, a prolific 17th-century Flemish artist known for his Baroque paintings which emphasize movement, color, and sensuality.

Pan-European Style

Refers to a unified or harmonious style that transcends national borders within Europe, incorporating elements common to many European cultures.